Which of the following is a disadvantage associated with licensing?
A)licensor has lower wages and prices
B)licensor may create its own competition
C)licensor has increased profit potential
D)licensor has complete control of the product
E)the firm's reputation is improved if it selects a poor choice as a licensee

Question

Quizplus · Accepted Answer

Licensing can result in creating competitors that may ultimately eat into the licensor's market share and profits. This is a disadvantage as it reduces the advantage usually garnered through patents and other forms of IP protection with no competition.

Which of the Following Is a Disadvantage Associated with Licensing