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Wonder Cat Licensing

Question 36

Multiple Choice

Wonder Cat Licensing
Wonder Cat is a popular new cartoon series created by the All Cartoon Channel (ACC) . Currently, the only Wonder Cat items available for sale are shirts sold exclusively through the ACC website. The cartoon series is a big hit in China, and as a result ACC has been approached by a Chinese firm about a licensing agreement. ACC executives are considering the pros and cons of such an agreement before making any final decisions.
-Which of the following questions would be more important to evaluate before ACC enters a licensing agreement with the Chinese firm?


A) What other cartoon characters have been licensed to foreign firms as a way to enter international markets?
B) Will a licensing agreement for the Wonder Cat character lead to additional agreements for other ACC characters?
C) Will the Wonder Cat products made by the Chinese firm be available for sale on the ACC website?
D) What is the likelihood that the Chinese firm will steal the Wonder Cat idea and become a competitor?

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