Which of the following is an advantage of licensing?
A)Licensing is the most economical method of going global.
B)The firm has equal control over the licensee as it would over its own operations.
C)The licensee gains a name without having to start from scratch.
D)If the licensee is successful, the firm earns more profits than it would do on its own.
E)The firm does not have the risk of creating a future competitor in the form of the licensee once the contract ends.

Question

Quizplus · Accepted Answer

Licensing allows the licensee to use the licensor's name and reputation, which can help the licensee establish a presence in a new market without having to start from scratch. This can be a significant advantage for the licensee.

Which of the Following Is an Advantage of Licensing