Exam 15: Licensing, Franchising, and Other Contractual Strategies

Which of the following is a disadvantage of licensing for technological firms?

In a system franchising agreement, the franchisor provides ________.

A collective mark ________.

Explain franchising as an entry strategy into foreign markets. Describe three advantages and three disadvantages of franchising for the franchisee.

Professional service firms, such as PriceWaterhouseCooper, often enter large international markets through FDI but usually use ________ to enter small markets.

A patent is granted to those who invent or discover a new and useful process, device, or manufactured product or an improvement on these.

________ is an arrangement in which a contractor supplies managerial know-how to operate a hotel, hospital, airport, or other facility in exchange for compensation.

Which of the following challenges is applicable to the franchisee in a franchising agreement?

Which of the following is protected under copyright laws?

In a system franchising agreement, the franchisee provides ________.

One of the advantages of licensing is that the levels of risk from such agreements are typically lower than for FDI.

Where counterfeiting and piracy are commonplace, companies are reluctant to invent, innovate, and market legitimate products, which reduces consumer choices and ultimately lowers living standards.

Franchising is more comprehensive than licensing because the franchisor prescribes virtually all of the business activities of the franchisee.

One of the disadvantages of licensing is that it requires the licensor to make a high capital investment in the foreign market.

Which of the following statements is TRUE of leasing?

The purpose of intellectual property rights is to ________ so they can exploit their inventions not only to recoup their investment costs and create commercial advantage but also to acquire power and market dominance free of direct competition.