DECA Sports and Entertainment Marketing Practice Exam

What is a key characteristic of licensed products?

1. They are always cheaper.

2. They utilize other companies' logos or trademarks.

3. They are available only online.

4. They cannot be sold in retail stores.

The correct answer is: They utilize other companies' logos or trademarks.

Licensed products are defined by their use of another company's logos, trademarks, or brand names. This is a fundamental aspect of licensing, as it allows one company to legally produce and sell products that feature the intellectual property owned by another entity. For example, a sports apparel company might license the logo of a professional sports team to create and sell clothing that fans desire. This symbiotic relationship benefits both the licensee, who gains access to valuable brand recognition, and the licensor, who earns royalties for the use of their trademark. The other characteristics mentioned do not accurately define licensed products. For example, licensed products are not always cheaper than non-licensed items; their prices can vary based on brand value and demand. Additionally, licensed products are widely available and can be found in many retail locations, not just online. Finally, licensed products are commonly sold in retail stores rather than being restricted from such environments.