A Well-Established Brand Can Be a Source of Sustainable Competitive

question 40

Multiple Choice

A well-established brand can be a source of sustainable competitive advantage because:

• A)Consumers will always pay a premium for a recognized brand.
• B)Brands can be protected by the law relating to trademarks.
• C)A brand protects a firm form competition from low-cost new entrants.
• D)It tends to be durable,loses value when transferred between firms,and is costly to replicate.

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Definitions:

Multiplier

An economic factor that quantifies the impact of a change in one economic variable on another.

Euros

The official currency of the eurozone, which is used by 19 of the 27 European Union countries, known as the euro area.

Foreign Exchange Futures

Financial contracts to buy or sell a specified amount of currency at a predetermined price on a set future date, used for hedging or speculating on currency movements.

Foreign Exchange Forward

A financial contract between two parties to buy or sell a particular currency amount at a predetermined future date and price.