Which of the Following Is a Potential Drawback of Multibranding

question 156

Multiple Choice

Which of the following is a potential drawback of multibranding?

• A) Multibranding tends to decrease brand loyalty.
• B) Company resources are likely to be concentrated on a single brand.
• C) Multibranding curbs the growth opportunities of established brands.
• D) Each brand might obtain only a small market share, and none may be very profitable.
• E) Multibranding causes companies to refrain from product diversification.

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Definitions:

Realization

The process of converting non-cash assets into cash, often recognized in accounting when revenue is earned and not necessarily when cash is received.

Bankruptcy Petition

A formal request filed to the court by an individual or business entity seeking relief from unmanageable debts through bankruptcy proceedings.

Cash Receipts

The total amount of money, including cash, checks, and electronic transfers, received by a business during a given period for goods or services sold.