The licensor _____________ in return for licensing one of its products to a foreign firm.
A) gets preferential trade treatment from the country of the licensee
B) gets a special subsidy from the country of the licensee
C) collects a royalty fee on every unit the licensee sells
D) gets a one time payment from the licensee
E) protects their local market

Question

Quizplus · Accepted Answer

The licensor collects a royalty fee on every unit that the licensee sells. This is the most common form of payment for licensing agreements, where the licensor earns a percentage of the revenue generated by the licensee's sales of the licensed product. The other options, such as preferential trade treatment, subsidies, or one-time payments, are not typically associated with licensing agreements.

The Licensor _____________ in Return for Licensing One of Its