Which of the following is a disadvantage of licensing?
A) The licensing company gains entry into a foreign market at a high risk.
B) It takes a lot of time for the licensee to gain production expertise and name.
C) Licensing is a complex way for a manufacturer to enter international marketing.
D) The licensor potentially creates a competitor in the form of the licensee.
E) The licensee is restricted from gaining knowledge about the licensor's intellectual property.
D
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Answer the following statements true (T) or false (F)
1. The application to management of techniques such as statistics and computer simulations is known as quantitative management. 2. Oscar is a manager of a downtown hotel and is currently considering the pricing of rooms for the upcoming holiday season. He would be wise to use the mathematical tools of management science to help him with this decision. 3. Facilities management is concerned with work scheduling, productions planning, and optimal levels of inventory. 4. Over the years, Toyota has used a variety of operations management-based "lean management" techniques to sell its cars on the basis of superior quality.
Which of the following is a procedure that requests a direct written response to the auditor form a third party?
a. Inquiry b. Confirmation c. Inspection d. Observation
Newton Company currently produces and sells 4,000 units of a product that has a contribution margin of $6 per unit. The company sells the product for a sales price of $20 per unit. Fixed costs are $18,000. The company is considering investing in new technology that would decrease the variable cost per unit to $8 per unit and double total fixed costs. The company expects the new technology to increase production and sales to 9,000 units of product. What sales price would have to be charged to earn a $99,000 desired profit assuming the investment in technology is made?
A. $22 B. $15 C. $13 D. $23
________ mergers involve the acquisition by one firm of another that produces products or services that are not directly related to those of the acquiring firm
A) Conglomerate B) Forward vertical C) Backward vertical D) Horizontal