Control over manufacturing,marketing,and strategy is granted to a licensee in return for:
A) increased taxation.
B) decreased taxation.
C) a royalty fee.
D) company stock given to the government.
E) profit sharing.

Question

Quizplus · Accepted Answer

Control over manufacturing, marketing, and strategy is granted to a licensee in return for a royalty fee. This fee is typically a percentage of the licensee's sales or profits, and it compensates the licensor for granting the licensee permission to use their intellectual property and business practices. Increased or decreased taxation, company stock given to the government, and profit sharing are not typical forms of compensation for licensing agreements.

Control Over Manufacturing,marketing,and Strategy Is Granted to a Licensee in Return