What Is the Strategy of Attaching a Popular Brand Name

question 144

Multiple Choice

What is the strategy of attaching a popular brand name to a new product in an unrelated product category is known as?

• A) brand licensing
• B) brand reinforcement
• C) brand engagement
• D) brand extension

---

Definitions:

Net Income

The total profit of a company after all expenses and taxes have been deducted from total revenues.

Operating Leverage

A measure of how revenue growth translates into growth in operating income, highlighting the fixed versus variable costs structure of a business.

Variable Costs

Costs that change in proportion to the level of production or sales activity, such as raw materials and direct labor.

Operating Income

Income earned from a firm's regular business operations, excluding deductions of interest and taxes.