Which of the following is true of licensing?

Question

Quizplus · Accepted Answer

Licensing can be an attractive option in unfamiliar markets because it allows a company to enter a new market quickly and with minimal investment in infrastructure or resources. Option A is incorrect because licensing does not involve bearing the development costs and risks associated with opening up a foreign market; rather, the licensee takes on these responsibilities. Option C is incorrect because licensing typically involves giving up some degree of control over manufacturing, marketing, and strategy in exchange for the benefits of using a local partner's knowledge and expertise. Option D is incorrect because licensing is not necessarily the most common strategy for large-scale companies; they may also use other strategies such as direct investment or joint ventures.

Which of the Following Is True of Licensing