A major advantage of licensing is
A) these arrangements almost always lead to a joint venture.
B) the bulk of the revenues gained by the licensee come back to the licensor.
C) your company name does not need to be associated with the product in a foreign country.
D) very little cost to the licensor.

Question

Quizplus · Accepted Answer

Licensing agreements typically do not require a significant investment or cost on the part of the licensor. This can make it an attractive option for companies looking to expand their reach without incurring significant expenses. However, the other options presented in the question are not necessarily advantages of licensing. Joint ventures are not always a result of licensing agreements, and while the licensor may receive a portion of revenues, it is unlikely to be the bulk. Additionally, in some cases, it may be important for a company to maintain their branding and name recognition in foreign markets.

A Major Advantage of Licensing Is