Which of the following is a potential drawback of licensing?
A) If quality is compromised, it may reflect poorly on the company providing the license.
B) Licensing will provide the original producer with much foreign marketing experience.
C) It is a relatively inexpensive way to market your product internationally.
D) It is an extremely expensive and highly involved method of international expansion.
E) It provides no compensation for the original company.

Question

Quizplus · Accepted Answer

Licensing involves giving the rights to use your product or technology to another company, which means you have limited control over how they use it. If the licensee does not maintain the quality of the product or service, it can reflect poorly on the original company and damage its reputation.

Which of the Following Is a Potential Drawback of Licensing