Which of the following is a disadvantage of licensing?
A)The company gains entry into a foreign market at a high risk.
B)It takes a lot of time for the licensee to gain production expertise and name.
C)Licensing is a complex way for a manufacturer to enter international marketing.
D)When the contract ends, the firm may find that it has created a competitor in the licensee.
E)The licensee does not have the power to buy the company's trade secret.

Question

Quizplus · Accepted Answer

Licensing involves sharing of proprietary technology or intellectual property, which can lead to the licensee gaining knowledge that can be used to compete with the licensor once the contract ends. This can be a significant disadvantage of licensing. The other options do not accurately describe a disadvantage of licensing.

Which of the Following Is a Disadvantage of Licensing