Which of the Following Is NOT True About Licensing

question 28

Multiple Choice

Which of the following is NOT true about licensing?

• A) It involves slightly more risk to the licensee than licensor.
• B) The license fee could be based on a percentage of final sales revenue of the product,or the number of units sold.
• C) When a product is licensed,the foreign partner will use the licensor's patented technology as agreed to manufacture and sell products that meet the licensor's standards.
• D) Unscrupulous licensees have been known to manufacture licensed products and sell them under different brand names.
• E) Licensing is the practice in which a company or individual provides the foreign partner with the technology to manufacture and sell products or services in a target country for an annual fee

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Definitions:

Beginning Finished Goods Inventory

The value of a company's completed products ready for sale at the start of an accounting period.

Cost Of Goods Sold

The total cost directly linked to the production or purchase of goods that have been sold in a period.

Ending Finished Goods Inventory

The value of products available for sale at the end of an accounting period, after all manufacturing costs are accounted for.

Fixed

Refers to something that is unchanging and stable, often used in the context of expenses or assets that do not vary with production volume.