Snaine Fashions Has Launched Its New Collection of Designer Bags

question 41

Multiple Choice

Snaine Fashions has launched its new collection of designer bags. It uses its registered logo at the front of all its branded bags. The brand logo is attractive and symbolizes the class that the brand name carries. The logo also helps customers quickly recognize and associate the bags with its maker. In this scenario, the logo being used by Snaine Fashions is a _____.

• A) trademark
• B) patent
• C) franchise
• D) permit

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Definitions:

Asymmetric Information

A scenario where one participant in a deal possesses greater or more advanced information than the other.

Adverse Selection

A situation where uneven information leads to transactions between parties where one party has more or better information than the other, often seen in insurance markets.

Occur

To happen or take place, referring to events or phenomena.

Adverse Selection

A situation in which one party in a transaction has more information than the other, often leading to an imbalance in which high-risk individuals are more likely to select and benefit from certain agreements, policies, or products.