A disadvantage of licensing as a means of acquiring new technology is that
A) it involves high monitoring costs.
B) the firm does not control or own the unique technology.
C) it is less economical than internal development.
D) it is the most time-consuming way to develop new technology.
E) the firm will need to acquire internal development capabilities.

Question

Quizplus · Accepted Answer

Licensing agreements often provide limited or no control over the technology being licensed, and the licensee does not own the technology. This can limit the firm's ability to make necessary changes or improvements to the technology, and may also result in competition from other firms who have licensed the same technology.

A Disadvantage of Licensing as a Means of Acquiring New