Exam 16: Licensing, Franchising, and Other Contractual Strategies

Which of the following is provided by the licensor in a licensing agreement?

Key challenges faced by the franchisee is the decreased likelihood of operating an independent business.

In a franchising agreement, the franchisee provides training, ongoing support, and the right to participate in cooperative marketing programs, to the franchisor.

Information technology has increased the success and growth of international franchising operations by ________.

To minimize the complexity of franchising, focal firms must ________.

Describe three advantages of licensing agreements from the perspective of the licensor.

________ is an arrangement in which the focal firm or a consortium of firms plans, finances, organizes, manages, and implements all phases of a project abroad and then hands it over to a foreign customer after training local workers.

In a licensing agreement, the licensee is both the owner and user of intellectual property.

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

In a system franchising agreement, the franchisee provides ________.

Which of the following is protected under copyright laws?

Host-country governments often encourage franchising because most of the money generated by the franchise remains in the local economy.

Wonder Cat Licensing (Scenario) Wonder Cat is a popular, new cartoon series created by the U.S-based All Cartoon Channel (ACC). Currently, the only Wonder Cat item available for sale are shirts that are sold exclusively through the ACC Web site. The cartoon series is a big hit in China, and as a result ACC has been approached by a Chinese firm about a licensing agreement. ACC executives are considering the pros and cons of such an agreement before making any final decisions. -Which of the following most likely supports an ACC decision to not enter a licensing agreement with the Chinese firm?

Explain how licensing works as an entry strategy into foreign markets. Describe the risks faced by technological firms that enter licensing agreements in foreign countries.

Excluding noncompete clauses in employee contracts help prevent employees from serving competitors for some years after leaving the firm.

Infringement of intellectual property is the unauthorized use or reproduction of products and services protected by a patent, copyright, trademark, or other intellectual property right.