Which of the following is true of licensing as a mode of entry into foreign markets?
A) A licensor grants the rights to tangible property to a licensee.
B) A licensing agreement grants rights to intangible property to a licensee for an unspecified period.
C) The licensor receives a royalty fee from the licensee.
D) The licensor puts up all of the capital necessary to start a business.
E) The licensor maintains control over its technological know-how.

Question

Quizplus · Accepted Answer

Licensing is a mode of entry into foreign markets whereby a licensor grants the rights to intangible property, such as trademarks or patents, to a licensee for a specified period in exchange for a royalty fee. The licensor does not put up all of the capital necessary to start a business and may not maintain complete control over its technological know-how.

Which of the Following Is True of Licensing as a Mode