All of the Following Are Disadvantages of Licensing EXCEPT

question 186

Multiple Choice

All of the following are disadvantages of licensing EXCEPT:

• A)the licensor reduces it potential profits gained from it.
• B)the foreign country gains employment by having the product manufactured locally.
• C)the licensor forgoes control of its product.
• D)should the licensee prove to be a poor choice,the name or reputation of the company may be harmed.
• E)the licensor may be creating its own competition.

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Definitions:

Bonds

Financial instruments representing loans made by investors to borrowers, typically governments or corporations, with an agreed-upon return.

Obligations

Obligations are duties or commitments legally or morally binding an individual or entity to act or refrain from acting in a certain manner.

Gunpowder

A mixture of saltpeter (potassium nitrate), sulfur, and charcoal (carbon) that when ignited, burns rapidly and is used as a propellant in firearms and as an explosive.