In a Licensing Agreement, the Licensee

question 190

Multiple Choice

In a licensing agreement, the licensee

• A) makes no initial investment to get started.
• B) does most of the marketing strategy planning for the markets it is licensed to serve.
• C) has more control over marketing than other approaches for entering international markets.
• D) assumes almost no risk in a foreign market.
• E) does not pay any fee or royalties to the licensor.

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Definitions:

Motivate

To provide with a reason or incentive to act in a certain way, often aiming to stimulate interest or enthusiasm in undertaking a task or goal.

Motivational Potential

The capacity or likelihood of something to stimulate interest or enthusiasm, thereby encouraging action or engagement.

Weak Economy

An economic state characterized by slow growth, high unemployment, and low consumer confidence.

Profit Sharing

A financial incentive strategy where employees receive a share of the company’s profits, based on its earnings, as a form of motivation and reward.