Which of the following is a disadvantage of licensing as a means of acquiring new technology?
A) It involves high monitoring costs.
B) The firm does not control or own the unique technology.
C) It is less economical than internal development.
D) It is the most time-consuming way to develop new technology.
E) The firm will need to acquire internal development capabilities.

Question

Quizplus · Accepted Answer

Licensing does not give the firm ownership or control of the technology, which can limit its ability to fully exploit or modify the technology to fit its unique needs. This can be a significant disadvantage in the long run. A, C, D, and E are not accurate disadvantages of licensing.

Which of the Following Is a Disadvantage of Licensing as a Means