According to the text, licensing agreements usually stipulate that a royalty of __________ be paid to the licensor.
A) 2 to 5 percent of profits
B) 2 to 5 percent of sales
C) 5 to 7 percent of profits
D) 5 to 7 percent of sales
E) none of the above

Question

Quizplus · Accepted Answer

Licensing agreements typically require a royalty based on a percentage of sales, not profits, with 2 to 5 percent being a common range. This allows the licensor to earn revenue from the licensee's sales activities.

According to the Text, Licensing Agreements Usually Stipulate That a Royalty