A disadvantage of a licensing agreement is the

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A licensing agreement can come with various disadvantages, including uncertainty of production quality (A), as the quality ultimately depends on the licensee's ability to manufacture and distribute the product. Additionally, licensing may nurture potential competitors (B) as the licensee may gain knowledge and experience in the market and utilize this to develop their own similar products. Finally, licensing involves dependence on a local company to generate revenue (C), meaning that the licensor's revenue stream is subject to factors such as the licensee's financial stability, market conditions, and contract terms. Therefore, all of the options (D) are valid disadvantages of licensing agreements.

A Disadvantage of a Licensing Agreement Is the