Most companies consider the market-entry option of licensing to be a high-risk option because of the heavy upfront investment.

Question

Quizplus · Accepted Answer

Licensing typically involves lower upfront investment compared to other market-entry strategies like direct investment or setting up a new subsidiary, as it usually involves granting a company the rights to use intellectual property in exchange for royalties, without the need for significant capital investment in new operations.

Most Companies Consider the Market-Entry Option of Licensing to Be