When a Competitor Used Its Logo in a Disparaging Way

question 87

Multiple Choice

When a competitor used its logo in a disparaging way in an advertisement, Max Corp. sued. It won the suit on the basis that the competitor violated its trademark. Which company brand role does this scenario exemplify?

• A) providing competitors with a benchmark against which to compete
• B) offering an effective and efficient methodology for categorizing products
• C) offering legal protection for a product
• D) helping reassure the customer in the purchase decision
• E) educating the customer about a product

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Definitions:

Bogey Portfolio

An investment portfolio used as a benchmark to measure the performance of other portfolios.

Treynor Measure

A performance metric for determining how well an investment compensates the investor for risk taken, excluding unsystematic risk.

Risk-Free Return

The return on investment with no risk of financial loss, often represented by the yield on government securities.

Sharpe's Measure

A ratio used to evaluate the risk-adjusted return of an investment, comparing its excess return over the risk-free rate to its standard deviation of returns.