Which of the following is true of licensing/franchising?
A) The licensor/franchisor has to bear the full costs and risks associated with foreign expansion.
B) The licensing/franchising strategy creates very limited competitors.
C) The licensor/franchisor has the ability to coordinate globally.
D) The licensor/franchisor does not have tight control over production and marketing.

Question

Quizplus · Accepted Answer

Licensing and franchising give the licensee/franchisee the right to produce and market a product under the licensor/franchisor's name, but the licensor/franchisor retains limited control over production and marketing. The cost and risks associated with foreign expansion are borne by the licensee/franchisee, not the licensor/franchisor, and licensing/franchising can create more competitors as other companies may seek to secure similar deals. While the licensor/franchisor may have some ability to coordinate globally, this is not a defining characteristic of licensing/franchising.

Which of the Following Is True of Licensing/franchising