Which of the Following Is a Potential Drawback of Multibranding

question 79

Multiple Choice

Which of the following is a potential drawback of multibranding?

• A)Consumers may become confused about the image of the main brand.
• B)An overextended brand name might lose its specific meaning for consumers.
• C)Different product features can appeal to consumers with different buying motives.
• D)The company's resources may be spread over too many brands.
• E)The company can occupy more retail shelf space.

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Definitions:

Fiduciary Duty

An obligation under the law for an individual to prioritize another's interest, often involving someone trusted with managing finances or assets.

Special Litigation Committee

A committee often formed within a corporation's board of directors to decide on legal strategies or manage specific litigation matters, especially in derivative lawsuits.

Derivative Suit

A lawsuit brought by a shareholder on behalf of a corporation against a third party, often its officers or directors, for harm done to the corporation.

Interested Directors

Board members who have a personal, financial, or other direct interest in a matter being considered by the board.