Which of the following is a potential drawback of licensing?
A) If quality is compromised, it may reflect poorly on the company providing the licence.
B) Licensing will provide the original producer with much foreign marketing experience.
C) It is a relatively inexpensive way to market your product internationally.
D) It is an extremely expensive and highly involved method of international expansion.
E) It provides no compensation for the original company.

Question

Quizplus · Accepted Answer

Licensing may not provide proper control over the quality of the product, which can negatively impact the reputation of the company providing the license.

Which of the Following Is a Potential Drawback of Licensing