If a company can deploy its intellectual property in a different industry,the higher are the transaction costs of licensing that intellectual property,the more likely it is that the firm will choose to diversify into that industry.

Question

Quizplus · Accepted Answer

This statement is true. If the transaction costs of licensing intellectual property are high, it may be more cost-effective for a company to directly enter into that industry through diversification rather than licensing.

If a Company Can Deploy Its Intellectual Property in a Different