Podcast
Questions and Answers
What is a potential disadvantage of licensing agreements?
What is a potential disadvantage of licensing agreements?
- Limited profitability (correct)
- Excessive transportation costs
- Decreased profits (correct)
- Inflexibility
Which of the following is not typically considered a disadvantage of licensing agreements?
Which of the following is not typically considered a disadvantage of licensing agreements?
- Potential for inflexibility
- Reduced market reach (correct)
- Limited profitability
- High home production costs
Which option demonstrates an incorrect assumption about licensing agreements?
Which option demonstrates an incorrect assumption about licensing agreements?
- They lead to increased home production costs. (correct)
- They may result in decreased profits.
- They can result in inflexible arrangements.
- They can limit profitability.
In the context of licensing agreements, which of the following could be a misconception?
In the context of licensing agreements, which of the following could be a misconception?
Which of the following options is typically a valid concern regarding licensing agreements?
Which of the following options is typically a valid concern regarding licensing agreements?
Flashcards
Inflexibility in licensing agreements
Inflexibility in licensing agreements
Licensing agreements can limit a company's ability to adapt to market changes or pursue new opportunities.
Decreased profits with licensing agreements
Decreased profits with licensing agreements
Licensing agreements may require sharing profits with the licensee, potentially reducing the licensor's overall earnings.
Limited control with licensing agreements
Limited control with licensing agreements
Licensing agreements can restrict a company's freedom to control how its product or technology is used or developed by the licensee.
Study Notes
Question 7
- Licensing agreements can have a potential disadvantage of decreased profits.
- Limited profitability is also a potential disadvantage of licensing agreements.
- Agreements can be inflexible.
- Home production costs are not a disadvantage of licensing agreements.
- Excessive transportation costs are not a disadvantage of licensing agreements.
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