In a brand licensing arrangement, the licensee is responsible for:
A)providing the brand name to another organisation for use in promoting its products.
B)collecting royalties from sales of the licensed products.
C)half of the financial losses in the event the licensed brand is a failure.
D)the production, but not the marketing, of the licensed product.
E)the manufacturing, marketing and financing of the licensed product.

Question

Quizplus · Accepted Answer

In a brand licensing arrangement, the licensee is responsible for the manufacturing, marketing and financing of the licensed product. The licensor provides the licensee with the right to use their brand name and may also provide guidance and support, but ultimately it is the licensee's responsibility to create and sell products using the licensed brand. They are also responsible for paying royalties to the licensor on sales of the licensed products. There is no specific requirement for the licensee to share in the financial losses if the licensed brand is a failure, and the production of the licensed product is typically also the responsibility of the licensee.

In a Brand Licensing Arrangement, the Licensee Is Responsible For