Licensing Refers to

question 157

Multiple Choice

Licensing refers to

• A)offering the right to a trademark, patent, trade secret, or similarly valued items of intellectual property in return for a royalty or fee.
• B)contracting with a foreign firm to manufacture products according to certain specifications.
• C)when a foreign country and a local firm invest together to create a local business.
• D)having a company handle its own exports directly without intermediaries.
• E)exporting through an intermediary, which often has the knowledge and means to succeed in selling a firm's product abroad.

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Definitions:

Retail Method

An accounting practice used in the retail industry to estimate inventory costs based on the retail price.

Merchandise Inventory

Goods available for sale, valued at the lower of cost or market price, on a company's balance sheet.

Estimated Cost

A projection or approximation of the cost associated with manufacturing a product or completing a project.

Net Realizable Value

The estimated selling price of goods minus any costs associated with their sale or disposal.