Which of the Following Is an Advantage of Licensing

question 56

Multiple Choice

Which of the following is an advantage of licensing?

• A)It offers extensive control over the marketing strategy.
• B)It offers the firm tight control over the manufacturing process.
• C)It is an attractive option for potentially volatile markets.
• D)It does not require granting of patent rights to third parties.

---

Definitions:

Subsidy Payments

Financial support given by a government or organization to lower the price of a product or service or to support a business or economic sector.

Quantity Supplied

Quantity supplied refers to the total amount of a product or service that producers are willing and able to sell at a given price over a specified period.

Per Unit Tax

A tax levied on goods that is fixed in amount for each unit produced or sold.

Consumer Surplus

The gap in the total funds consumers are willing and financially prepared to allocate for a good or service, versus the funds actually allocated.