All of the following are advantages of licensing except
A)the foreign country gains employment by having the product manufactured locally.
B)the licensee gains information that allows it to start with a competitive advantage.
C)the low risk to the company granting the license.
D)the licensor's brand name can never be harmed as a result of the licensee.
E)the capital-free entry into a foreign country.

Question

Quizplus · Accepted Answer

The statement "the licensor's brand name can never be harmed as a result of the licensee" is false. If the licensee fails to deliver quality products or engages in unethical behavior, it can negatively impact the licensor's brand reputation. All of the other options listed are valid advantages of licensing.

All of the Following Are Advantages of Licensing Except