Which of the following is an advantage inherent in the use of licensing?
A) The licensor retains control of its product.
B) The licensor is protected from creating a potential competitor.
C) It provides an exemption from domestic trade regulations.
D) There is an increase in potential profit compared with direct investment.
E) The licensee gains information that can help it start with a competitive advantage.

Question

Quizplus · Accepted Answer

Licensing allows the licensee to gain access to the licensor's proprietary information, technology, or brand, which can provide a competitive advantage in the market.

Which of the Following Is an Advantage Inherent in the Use