Which of the Following Is a Potential Drawback of Multibranding

question 15

Essay

Which of the following is a potential drawback of multibranding?
Consumers may become confused about the image of the main brand.
An overextended brand name might lose its specific meaning for consumers.
Different product features can appeal to consumers with different buying motives.
The company's resources may be spread over too many brands.
The company can occupy more retail shelf space.

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Definitions:

UCC Balance

The outstanding balance on a loan or financing arrangement under the Uniform Commercial Code, often related to personal property loans.

Tax Deductible

Expenses that can be subtracted from gross income to reduce the taxable income, thus lowering the overall tax liability.

Capital Cost Allowance (CCA)

A tax deduction in Canada that represents a business's investment in depreciable properties, allowing for the asset's cost to be written off over its useful life.

Taxable Income

The amount of an individual's or a corporation's income used to determine how much tax is owed to the government in a given tax year.