Which of the Following Is a Disadvantage Associated with Licensing

question 40

Multiple Choice

Which of the following is a disadvantage associated with licensing?

• A)The licensee pays lower wages and sells at lower prices.
• B)The licensor may create its own competition.
• C)The foreign government dislikes it because it does not increase local employment.
• D)This is the most expensive and risky method for global expansion.
• E)The firm's brand does not get international exposure

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Definitions:

Nondelegable Duty

An obligation or duty that cannot be transferred to another party and must be performed by the individual or entity originally charged with it.

Duty Of Care

The legal obligation to avoid actions or omissions that could foreseeably harm others.

Principal

The primary party to a transaction, such as a contract or financial instrument, who has the rights and responsibilities directly related to it.

Agent

An individual authorized to act on behalf of another person or entity, often in a business setting.