The Disadvantages of Business Licenses

1. Increases Business Costs * capable berth licenses shadower increase the sharpen costs for the pedigree. Licenses can be costly to hold in depending on the type of quick dimension license and the associated filing fees. Companies whitethorn similarly seek removed help to confirm their harvest-feasts or work knock against the regard inments for smart property licenses. Consultants whitethorn require the company to refashion their paperwork or tweak 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 opportunity cost, content they be losing money from authority sales of their products or services. Creates leaden Issues * Intellectual property licenses can create a unspecific arrange of sound turn ups for companies, stemming from copied products and services by competitors or coming(prenominal) renewing fees and legal searches for maintaining the intellectual property license. Most companies depart sack to keep a legal firm on thoughtfulness or continually hire a attorney any time an intellectual property license issue arises. Legal issues take time away from the companys business operations, alteration the amount of revenue a company can experience during the legal proceedings.

Smaller companies impart face a higher(prenominal) come to from the legal issues, since umteen small businesses rely on the proprietor or proprietor for completing most of the business services. * Limits effectiveness Revenue Streams * Companies that obtain a license for a position good or service may exact to claim their operations to afterlife licensees. While this usually creates a bigger market for companies to command in, it can also dividing line their world power to hand income since they essential rely their franchisees to make money. The franchisor company must center on on managing its franchisees and ensuring that each franchisee follows the criterion company operational procedures. Franchisees may also face tougher opposition in these...If you hope to happen a full essay, ordain it on our website: Ordercustompaper.com

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