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Question
Which of the following is not true of licensing?
a. Licensing allows a firm to purchase the right to manufacture and sell another firms products within a specific country or set of countries.
b. The licensor is normally paid a royalty on each unit sold.
c. Licensors have considerable control the manufacturing and marketing of their products marketed in foreign countries.
d. The licensee takes the risks and makes the investments in facilities for manufacturing, marketing and distribution of goods and services.
e. Licensing is an increasingly popular entry mode for smaller firms with insufficient capital and limited brand recognition.
Answer
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