Which of the following statements is true about licensing and franchising?
a.
It involves setting a fully operational independent entity in a foreign country to conduct business.
b.
Unlike franchising, licensing is used by service firms such as hotels and fast-food chains.
c.
Like franchising, licensing is a high-cost means of market entry.
d.
The most important risk involved with licensing is the potential loss of proprietary advantage.
Answer: d