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APICS CSCP Exam - Topic 3 Question 40 Discussion

A possible risk of licensing other companies to manufacture products is:
A) losing market share.
B) the other companies becoming competitors
C) the products becoming a commodity
D) the products being over priced

APICS CSCP Exam - Topic 3 Question 40 Discussion

Actual exam question for APICS's CSCP exam
Question #: 40
Topic #: 3
[All CSCP Questions]

A possible risk of licensing other companies to manufacture products is:

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Suggested Answer: A

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Mee
10 months ago
Overpriced products? That’s not usually the case with licensing.
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Kimberely
10 months ago
Wait, are we sure they’ll become competitors?
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Stephaine
10 months ago
Commoditization is a big risk too!
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Tegan
10 months ago
Totally agree, they could end up competing against you.
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Na
11 months ago
Losing market share is a real concern.
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Denae
11 months ago
Oof, this one's got me a bit stumped. I'm not entirely sure how the Central Feature tool works, so I'll need to review the tool's documentation and think through the potential factors that could lead to an off-center output.
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Stephaine
11 months ago
"Quality" seems relevant, but I don't think it captures the concept of benefits versus cost like "value" would.
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Ellen
11 months ago
This one seems pretty straightforward. I think the key is to focus on the factors that would lead a company to hold more safety stock.
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Virgina
11 months ago
Okay, I think I've got this. The profile option disables the receivable activity balancing segment, so it would affect any transactions that involve that segment, like invoices, adjustments, debit/credit memos, and activity applications. I'll select those four.
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