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

Licensing provides the licensee with the incentive to work hard and succeed, as they have paid for the right to use the licensor's intellectual property. This can lead to increased profits for both the licensor and the licensee. A, C, and D are incorrect; while licensing may boost domestic market revenues and require little upfront costs for the licensee, there are often long-term contractual requirements that must be met.

Licensing Is a Popular Strategy Because