Which of the Following Statements Is True About Licensing and Franchising

Multiple Choice

 Which of the following statements is true about licensing and franchising?

A) They involve setting up 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.