Which of the following statements is true of licensing?

28. Which of the following statements is true about licensing? A. In a typical arrangement, the licensor will allow the licensee to use a patent, a trademark, or proprietary information in exchange for a fee. B. Companies that spend a relatively large share of their revenues on research and development (R&D) are likely to be licensees. C. Licenses are uncommon among large firms seeking to acquire technology to bolster an existing product. D. A license is a very high-cost way of gaining and exploiting foreign markets.

Answer

28. Option A

Explanation: In licensing, the licensor allows the licensee to use its intellectual properties like trademarks, patents or proprietary information for a fee. Licensing is an import mode of international expansion by firms without making much investment in the foreign market.

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