Peter and Arnold are the co-owners of HKL Creations. Peter wants to enter into the international market by licensing the products created by HKL. However, Arnold is against licensing. Which of the following is a reason that Arnold can use to justify his viewpoint?
A) The company will lose the opportunity to get feedback directly from customers.
B) The company will be prevented from entering product markets that are outside its own strategic goals.
C) The company will not be able to leverage its brand into new industries.
D) The company will need to bear great financial liability.

Question

Quizplus · Accepted Answer

Licensing can lead to a loss of direct customer feedback since the licensee would be the one interacting with the end-users, not the original company.

Peter and Arnold Are the Co-Owners of HKL Creations