Which of the Following Statements Is True of a Brand

question 4

Multiple Choice

Which of the following statements is true of a brand extension strategy?

• A) Brand extension cuts the costs and risks of introducing new products.
• B) It is used by firms that have a weak brand name.
• C) It is a strategy used by start-up firms.
• D) It refers to developing items to fill gaps in the market.
• E) Brand extension refers to creating variations of a product.

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Definitions:

Economic Profit

The profit a business makes after deducting both its explicit and implicit costs, including opportunity costs.

Normal Rate of Return

The standard profit or return that is anticipated on an investment, considering the levels of risk and market conditions.

Computer Software Industry

The sector involved in the development, maintenance, and publication of software that offers different types of services or functions for computer users.

Computer Industry

Refers to the business sector involved in the development, manufacturing, and sale of computers, computer components, and software.