Which of the Following Is False About a Multibranding Strategy

question 93

Multiple Choice

Which of the following is false about a multibranding strategy?

• A) With a multibranding strategy, there is no risk that a product failure will affect other products in the line.
• B) Some large firms have found that the complexity and expense of implementing a multibranding strategy outweigh its benefits.
• C) With a multibranding strategy, each brand is unique to each market segment.
• D) A multibranding strategy is used when a firm produces products and sells them under the brand name of a wholesaler or retailer.
• E) Some multibrands are introduced to confront competitors' brands.

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Definitions:

Sale of Merchandise

The transaction process that occurs when a business sells its products, typically recorded as revenue on the income statement.

Gross Profit

The difference between total revenue and the cost of goods sold, representing the basic profit from sales before deducting any operating expenses.

Sales Revenue

The total amount of income generated by the sale of goods or services before deducting any expenses.

Cost of Goods Sold

Represents the direct costs attributable to the production of the goods sold by a company, including both materials and labor costs.