Which of the following is an advantage of licensing?
A) It allows companies to earn additional profits without investing more money.
B) It provides licensors an exclusive right to conduct business in a particular location.
C) It helps smaller local partners to link up with larger, more experienced foreign firms.
D) It gives the parent company complete control over the foreign facilities.

Question

Which of the following is an advantage of licensing? 
A) ​It allows companies to earn additional profits without investing more money. 
B) ​It provides licensors an exclusive right to conduct business in a particular location. 
C) ​It helps smaller local partners to link up with larger, more experienced foreign firms. 
D) ​It gives the parent company complete control over the foreign facilities.

Quizplus · Accepted Answer

Licensing allows companies to earn additional profits without investing more money, as they can receive royalties or fees for the use of their intellectual property by others.

Which of the Following Is an Advantage of Licensing