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:

Minimum Wage

The lowest wage permitted by law or by a special agreement that can be paid to an employee.

Wages

Compensation or earnings paid to an employee by an employer based on the hours worked or the output produced.

Appeal to Force

A logical fallacy where a conclusion is supported by a threat or use of force, rather than by evidence or reasoning.

Business Meeting

A gathering of people within an organization to discuss and make decisions on matters of mutual interest or concern.