Which of the Following Is True of Licensing

question 52

Multiple Choice

Which of the following is true of licensing?

• A)It involves bearing the development costs and risks associated with opening up a foreign market.
• B)It can be an attractive option in unfamiliar markets.
• C)It ensures that the firm has tight control over manufacturing,marketing,and strategy that is required for realizing economies of scale.
• D)It is the most common strategy for large-scale companies.

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Definitions:

Nearest Cent

Rounding a monetary amount to the closest cent, often used to simplify cash transactions.

Simple Interest

An interest calculation method where the interest charge is calculated only on the principal amount, without compounding.

Nearest Cent

Rounding a monetary amount to the closest one-hundredth of the currency unit, such as a dollar.

Semiannual Compounding

Another term for compounded semi-annually, indicating that interest is added to the principal sum twice per year.