Asked by Dinesh Sivanesan on Jun 03, 2024
Verified
Royalties can be earned from allowing others the right to use:
A) patents.
B) plays.
C) songs.
D) all of these.
Royalties
Payments made to a rights holder, such as an author, artist, or patentee, for the use of their original work or invention.
Patents
Legal rights granted to inventors that give them exclusive rights to use, make, and sell their invention for a certain period of time.
Songs
Musical compositions that are sung or played by voices or instruments.
- Determine the sources from which royalty income arises and the suitable approach for reporting it.
Verified Answer
ZK
Zybrea KnightJun 04, 2024
Final Answer :
D
Explanation :
Royalties can be earned from allowing others to use patents, plays, songs, and other intellectual properties. When someone obtains the rights to use a certain intellectual property, they agree to pay the owner of that property a percentage of their profits or a fixed amount in exchange for the use of that property. Therefore, all of these choices are correct.
Learning Objectives
- Determine the sources from which royalty income arises and the suitable approach for reporting it.