In a brand licensing arrangement, the licensee is responsible for
A) providing the brand name to another organization for use in promoting products.
B) collecting the royalties from sales of the licensed products.
C) half of the financial losses in the event that the licensed brand is a failure.
D) the production, but not the marketing of the licensed product.
E) the manufacturing, marketing, and financing of the licensed product.

Question

Quizplus · Accepted Answer

In a brand licensing arrangement, the licensee is responsible for manufacturing, marketing, and financing the licensed product. The licensor provides the brand name and usually retains control over the quality of the product and how the brand is used by the licensee. The licensee pays royalties to the licensor based on sales of the licensed product. The licensee bears the financial risk of producing and marketing the product, including any losses incurred.

In a Brand Licensing Arrangement, the Licensee Is Responsible for