U. S.-based Centra Corporation is hesitant about entering into a licensing agreement with Fission, Inc., a company from another nation, due to the likelihood that Fission will break a contract or expropriate property rights. What specific type of risk is Centra Corporation trying to avoid?

Question

Business

Vang

12 May, 08:42

U. S.-based Centra Corporation is hesitant about entering into a licensing agreement with Fission, Inc., a company from another nation, due to the likelihood that Fission will break a contract or expropriate property rights. What specific type of risk is Centra Corporation trying to avoid?

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Answers (1)

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Rayan Kidd · Answer 1

Legal Risk

Explanation:

Legal Risk refers to a type of damage to the company that can occurred due to an issue with the law.

In the excerpt above, we know that Centra corporation has the fear that Fission will break a contract or expropriate property rights ...

- A break a contract is a for of issue with the law that could potentially make Central unable to obtain its fair share of profit from the operation

- Exporpriate Property right is a type of legal Risk that can occurs if the law in foreign country force the company to give the ownership of that peoperty right to the government.