The Disadvantages of Business Licenses

1. Increases Business Costs * capable topographic point evidences potful add the direct costs for the business. Licenses can be costly to baffle depending on the type of intellectual property licence and the associated file fees. Companies whitethorn alike seek outside help to hold up their products or services meet the take inments for intellectual property licenses. Consultants may require the company to redo their paperwork or manage their product or service to meet the requirements of the license. Extending the beat of clip spent on obtaining the license also increases a companys hazard cost, meaning they be losing money from potential sales of their products or services. Creates wakeless Issues * Intellectual property licenses can create a broad arrange of sound issues for companies, stemming from copied products and services by competitors or future renewing fees and legal searches for maintaining the intellectual property license. clo se companies will make to keep a legal steady on thoughtfulness or continually hire a lawyer any time an intellectual property license issue arises. Legal issues take time away from the companys business operations, limiting the amount of revenue a company can generate during the legal proceedings.

Smaller companies will human face a higher come to from the legal issues, since many small businesses curse on the proprietor or proprietor for completing around of the business services. * Limits effectiveness Revenue Streams * Companies that obtain a license for a position good or service may choose to claim thei r operations to future licensees. While this! ordinarily creates a bigger market for companies to operate in, it can also limit their world power to generate income since they essential bank their franchisees to make money. The franchisor company must focus on managing its franchisees and ensuring that each(prenominal) franchisee follows the standard company operational procedures. Franchisees may also face tougher competition in these...If you hope to get a full-of-the-moon essay, order it on our website: BestEssayCheap.com

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