Advantages to licensing as a market entry strategy include all of the following EXCEPT________.
A) limited financial risk in the short run
B) easy availability of raw materials
C) services such as local distribution
D) decrease in operational costs
E) complete control of the patent

Question

Quizplus · Accepted Answer

Licensing involves giving another company the right to use your patent or technology. Therefore, complete control of the patent is not an advantage of licensing. The other options, limited financial risk in the short run, easy availability of raw materials, services such as local distribution, and decrease in operational costs are all advantages of licensing.

Advantages to Licensing as a Market Entry Strategy Include All