Which of the Following Best Compares Licensing and Exporting as Tools

question 68

Multiple Choice

Which of the following best compares licensing and exporting as tools for entering foreign markets?

• A) Licensing and exporting are both low-risk methods, but licensing is not as simple as exporting.
• B) Licensing is riskier and more complicated than exporting.
• C) Exporting is much riskier and more complicated than licensing.
• D) Licensing and exporting are both low-risk, but exporting is more complicated.
• E) Licensing and exporting are both complicated and expensive methods.

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Definitions:

Two-Column Journal

A fundamental accounting record with two columns used for debits and credits to record financial transactions.

Debit

An accounting entry that increases an asset or expense account, or decreases a liability or equity account. It is positioned on the left side of an account ledger.

Credit

An accounting entry that increases the balance of liabilities and equity accounts or decreases the balance of an asset or expense account.

Horizontal Analysis

A financial analysis technique that evaluates the changes in the amounts of financial statement items over a period.