Which of the following is not true of licensing?
A) Licensing allows a firm to purchase the right to manufacture and sell another firm's products within a specific country or set of countries.
B) The licensor is normally paid a royalty on each unit sold.
C) Licensors have considerable control the manufacturing and marketing of their products marketed in foreign countries.
D) The licensee takes the risks and makes the investments in facilities for manufacturing, marketing and distribution of goods and services.
E) Licensing is an increasingly popular entry mode for smaller firms with insufficient capital and limited brand recognition.

Question

Quizplus · Accepted Answer

Licensors generally have less control over the manufacturing and marketing of their products in foreign countries because they are entrusting the licensee with these operations. The licensee takes on the risks and investments associated with manufacturing, marketing, and distribution in the foreign market.

Which of the Following Is Not True of Licensing