All of the Following Are Potential Benefits of Brand Extension

question 44

Multiple Choice

All of the following are potential benefits of brand extension except

• A) allowing the perception of a brand with a quality image to be carried over to the new product.
• B) lowering marketing costs.
• C) boosting sales of the core brand.
• D) spending less on creating brand awareness and associations.
• E) eliminating competition.

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Definitions:

Held-to-Maturity Securities

Financial assets purchased with the intention of holding them until they mature; commonly bonds or other debt securities.

Dividend Yield

The ratio of a company's annual dividend payments to its share price, representing the return on investment a shareholder receives from dividends alone.

Preferred Stock

A type of stock that gives shareholders preference over common stockholders in the distribution of dividends and assets upon liquidation.

Common Stock

Equity securities representing ownership in a corporation, providing voting rights and sharing in the profits through dividends.