Please refer to the following advantages and disadvantages:

Advantages
Little capital outlay
Some control of operations
Risks are shared and limited
Local knowledge

Disadvantages/Potential problems
Limited contact with customers
No direct control of operations
Profits must be shared

These advantages and disadvantages refer to:

A. Patenting
B. Franchising
C. Licensing
D. None of the Above

To determine the answer to this question, we need to analyze the advantages and disadvantages provided and match them to the appropriate business model.

Advantages:
1. Little capital outlay: This means that the required investment is relatively low.
2. Some control of operations: This implies that the entity has at least some say in managing the operations.
3. Risks are shared and limited: It suggests that the entity does not bear the full risk alone, but rather shares the risk with others.
4. Local knowledge: This indicates that there is an advantage in having knowledge of the local market or area.

Disadvantages/Potential problems:
1. Limited contact with customers: This means that there may be a lack of direct interaction with customers.
2. No direct control of operations: It suggests that there is no direct control over the day-to-day operations.
3. Profits must be shared: This implies that the entity does not fully retain all the profits.

Based on these advantages and disadvantages, the business model that aligns most closely is B. Franchising. In a franchise model, an individual or entity (the franchisee) is granted the rights to operate a business using the branding, systems, and support of an established company (the franchisor). The advantages listed align with the typical benefits of franchising, such as low capital investment, shared risk, some level of operational control, and access to the franchisor's local knowledge. The disadvantages align with the potential drawbacks of franchising, such as limited contact with customers and the requirement to share profits with the franchisor.