A potential disadvantage of licensing agreements is:
A) decreased profits.
B) limited profitability.
C) inflexibility.
D) home production costs.
E) excessive transportation costs.

Question

Quizplus · Accepted Answer

A company may prefer to arrange for a foreign company to manufacture or market its products under a licensing agreement. Factors leading to this decision may include excessive transportation costs, government regulations, and home production costs.

A Potential Disadvantage of Licensing Agreements Is