The major disadvantage of licensing agreements is that international companies cannot maintain control over their licensees.
Answer the following statement true (T) or false (F)
False
Two common ways of maintaining effective control over licensees are shipping one or more critical components from the United States or locally registering patents and trademarks to the U.S. firm.
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According to U.S. laws, there is no restriction on remittances of royalties received abroad based on the commercial negotiation between licensor and licensee
Indicate whether the statement is true or false
A Limited liability company (LLC) organized in the United States is considered a domestic LLC throughout the United States
Indicate whether the statement is true or false
When a business uses the straight-line method of depreciation, the amount of depreciation is reduced from year to year
Indicate whether the statement is true or false
A company purchased $1,800 of merchandise on July 5 with terms 2/10, n/30. On July 7, it returned $200 worth of merchandise. On July 28, it paid the full amount due. Assuming the company uses a perpetual inventory system, and records purchases using the gross method, the correct journal entry to record the merchandise return on July 7 is:
A. Debit Accounts Payable $1,800; credit Purchase Returns $200; credit Merchandise Inventory $1,600. B. Debit Accounts Payable $200; credit Merchandise Inventory $200. C. Debit Merchandise Inventory $200; credit Sales Returns $200. D. Debit Merchandise Inventory $200; credit Accounts Payable $200. E. Debit Merchandise Inventory $1,600; credit Cash $1,600.