All of the following are disadvantages of licensing except
A)the licensor reduces its potential profits gained from product sales.
B)the foreign country gains employment by having the product manufactured locally.
C)the licensor forgoes control of its product.
D)should the licensee prove to be a poor choice, the name or reputation of the company may be harmed.
E)the licensor may be creating its own competition.

Question

Quizplus · Accepted Answer

The disadvantage of licensing listed in option B is actually a potential advantage, as it promotes economic growth and job creation in the foreign country. The other options (A, C, D, and E) are all valid disadvantages of licensing.

All of the Following Are Disadvantages of Licensing Except