What are two possible risks involved with licensing?

What will be an ideal response?


The firm has less control over the licensee than it would over its own production facilities. Furthermore, if the licensee is very successful, the firm has given up these profits, and if and when the contract ends, it may find it has created a competitor.

Business

You might also like to view...

The Northern Co. manufactures office chairs. The following has the following information for June Refer to the original data. If the company wants to achieve a target profit of $25,000 for June, they should sell close to:

a.1,869 chairs. b.1,658 chairs. c.1,785 chairs. d.1,428 chairs. e.None of the answers are correct.

Business

Compare and contrast fee-for-service and managed health care plans

What will be an ideal response?

Business

The amortization period for $58,000 of startup expenses is 180 months

a. True b. False Indicate whether the statement is true or false

Business

The Carter Corporation makes products A and B in a joint process from a single input, R. During a typical production run, 50,000 units of R yield 20,000 units of A and 30,000 units of B at the split-off point. Joint production costs total $90,000 per production run. The unit selling price for A is $4.00 and for B is $3.80 at the split-off point. However, B can be processed further at a total cost of $60,000 and then sold for $7.00 per unit.In a decision between selling B at the split-off point or processing B further, which of the following items is not relevant:

A. the $3.80 unit sales price of B at the split-off point. B. the $7 unit selling price for B after further processing. C. the portion of the $90,000 joint production cost allocated to B. D. the $60,000 cost to process B beyond the split-off point.

Business