Which of the following is NOT true about licensing? a. Licensing is the practice in which...

Which of the following is NOT true about licensing?

	a.	Licensing is the practice in which a company or individual provides the foreign partner with the technology to manufacture and sell products or services in a target country for an annual fee
	b.	When a product is licensed, the foreign partner will use the licensor’s patented technology as agreed to manufacture and sell products that meet the licensor’s standards.
	c.	The license fee could be based on a percentage of final sales revenue of the product, or the number of units sold.
	d.	It involves slightly more risk to the licensee than licensor.
	e.	Unscrupulous licensees have been known to manufacture licensed products and sell them under different brand names

Expert Solution

d is correct as the risk to the licensor is always greater than that to the licensee, where the former might suffer both financially and on account of tarnished reputation due to unscrupulous conduct of the later, or inefficiency shown by the later, resulting in greater losses for a licensor. These losses are much less for licensee.

keosha answered 2 years ago

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