Which of the Following Is a Benefit of Branding

question 43

Multiple Choice

Which of the following is a benefit of branding?

• A)Well-recognized brands increase the shopping time necessary to find the quality and consistency buyers desire in a product.
• B)Branding reduces the risks involved in some purchases for which buyers are unable to determine the quality objectively.
• C)Brands communicate no information about the consumers who buy the brands.
• D)Brands hide a product's special qualities.

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Definitions:

Discount Rate

It’s the interest rate used in the process of discounted cash flow analysis to evaluate the present value of anticipated future cash flows.

Required Return

The basic annual percent yield needed to appeal to individuals or businesses for investment in a specific project or security.

Cash Flows

The gross flow of cash and assets equivalent to cash moving into and away from a business operation.

Payback Period

Payback period is the amount of time it takes for an investment to generate an amount of cash flow equal to the original investment amount.