Which of the Following Risks Is Most Closely Associated with the Strategy

question 84

Multiple Choice

Which of the following risks is most closely associated with the strategy of brand extension?

• A) brand flanking
• B) counterfeiting
• C) controlling the use of an image owned by the company
• D) negotiating a relationship with a brand ally
• E) losing focus of the core positioning of the brand

---

Definitions:

Contribution Margin

The amount remaining from sales revenue after variable expenses are deducted, indicating the potential profitability of products.

Net Operating Income

A measure of a company's profitability from its core business operations, excluding non-operating income and expenses.

Variable Expense Ratio

A measurement that indicates the proportion of variable expenses to sales, showing how costs change with sales volume.

Break-even Point

The sales amount where the total income matches the total expenses, leading to neither profit nor loss for the company.