Even If Sales of a Brand Extension Are High and Meet

question 82

Multiple Choice

Even if sales of a brand extension are high and meet targets,the revenue may be coming from consumers switching to the extension from existing parent-brand offerings-in effect ________ the parent brand.

• A) diluting
• B) cannibalizing
• C) reinforcing
• D) eroding
• E) feeding back to

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Definitions:

Subchapter S Corporation

A form of corporation that meets specific Internal Revenue Code requirements, allowing it to be taxed as a pass-through entity, thereby avoiding double taxation on dividends.

Elects

The act of choosing or deciding on a particular option or course of action, often used in legal and financial contexts.

Terminate

To bring to an end; this can relate to employment, contracts, or services, among others.

Corporate Alternative Minimum Tax

A parallel tax system aimed at ensuring that corporations pay at least a minimum amount of tax, regardless of deductions or credits that would otherwise lower their tax bill.