Licensing is a popular strategy because
A) it boosts domestic market revenues.
B) the licensee has incentive to work hard and succeed because he/she has borne the cost.
C) licensees spend little or no money to produce and market their products.
D) there are seldom any long-term contractual requirements.

Question

Quizplus · Accepted Answer

Global licensing agreements have several advantages. Through licensing, an organization can gain additional revenues it normally would not have generated in its home market. Foreign licensees often must purchase start-up supplies, component materials, and consulting services from the licensing firm. Licensors spend little or no money to produce and market their products.

Licensing Is a Popular Strategy Because