An Advantage of Licensing as a Method of Entering Global

question 88

Multiple Choice

An advantage of licensing as a method of entering global competition is that the

• A)licensee bears most of the costs and risks associated.
• B)licensing company has control over its technology.
• C)licensing company has control over quality levels.
• D)licensing company has lower communication costs.
• E)licensee has lower production costs.

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Definitions:

Stock Dividend

A dividend payment made to shareholders in the form of additional shares of stock, rather than cash.

Retained Earnings

Profit that remains after dividends are paid, which is reinvested in the company or used to pay off debt.

Treasury Stock

Shares of a company's own stock that it has reacquired but not retired, which do not pay dividends and have no voting rights.

Cash Dividend

A payment made by a company out of its profits to its shareholders in the form of cash.