In the context of entering into foreign markets, which of the following statements is true of licensing?
A) Licensing prevents companies from entering geographic or product markets that are outside their own strategic goals.
B) A licensor becomes one step closer to customers and can obtain direct feedback from them.
C) With an increase in the number of licensees, companies can easily prevent their brand from being misused.
D) Licensing agreements provide only limited control over the way in which a licensed brand is used.

Question

Quizplus · Accepted Answer

Licensing agreements often limit the degree of control a company can exert over how its brand, product, or technology is used by the licensee. This can lead to challenges in ensuring the brand is represented consistently and to the company's standards.

In the Context of Entering into Foreign Markets, Which of the Following