Which of the following statements is true about licensing and franchising?
A) It involves setting a fully operational independent entity in a foreign country to conduct business.
B) Unlike franchising,licensing is used by service firms such as hotels and fast-food chains.
C) Like franchising,licensing is a high-cost means of market entry.
D) The most important risk involved with licensing is the potential loss of proprietary advantage.

Question

Quizplus · Accepted Answer

Licensing involves granting rights to a licensee to use intellectual property, which can lead to the risk of losing proprietary advantage if the licensee misuses or leaks the intellectual property.

Which of the Following Statements Is True About Licensing and Franchising