With Licensing the ________ Is Likely to Be Lower Than

question 25

Multiple Choice

With licensing the ________ is likely to be lower than with FDI because of lower profits; however, the ________ is likely to be higher due to a greater return per dollar invested.

• A) IRR; NPV
• B) NPV; IRR
• C) cost of capital; NPV
• D) IRR; cost of capital

---

Definitions:

Par Common Stock

The face value of common shares issued by a company, which is noted on the share certificate.

No-Par Common Stock

Shares of common stock issued without a par value, which means they are not assigned a nominal face value.

Treasury Stock

Shares of a company's own stock that it has reacquired and held in the company's treasury.

Preferred Stock

A class of ownership in a corporation that has a higher claim on assets and earnings than common stock and typically does not have voting rights but has a fixed dividend.