Which of the following is true of licensing?
A)The core brand is partially responsible for financially supporting the company seeking the license.
B)It involves a payment of fee to the core brand.
C)All the benefits of a licensed product go to the core brand, and the core brand enjoys limited liability.
D)The core brand takes on negligible risks in the licensing agreement.

Question

Quizplus · Accepted Answer

Licensing involves paying a fee to the core brand for the right to use their intellectual property, so choice B is true. Choice A is incorrect because it implies that the company seeking the license financially supports the core brand, which is not the case. Choice C is incorrect because the benefits of a licensed product are often shared between the core brand and the licensee, and both parties have some level of liability. Choice D is also incorrect because the core brand does take on some level of risk in the licensing agreement, such as the risk of damaging their brand's reputation if the licensee produces low-quality products.

Which of the Following Is True of Licensing