Qualcomm, a high-tech company headquartered in San Diego, owns the rights to several of the key components that permit cell phones to work. Instead of selling cell phones itself, Qualcomm grants permission to many companies, such as Samsung and LG, to use specific forms of its intellectual property in exchange for monetary compensation. Qualcomm in engaging in an external growth strategy referred to as:
A) licensing
B) strategic alliances
C) acquisitions
D) new product development
E) joint ventures

Question

Quizplus · Accepted Answer

Qualcomm is engaging in licensing, which involves granting permission to other companies to use specific forms of its intellectual property in exchange for monetary compensation.

Qualcomm, a High-Tech Company Headquartered in San Diego, Owns the Rights