_____ Involves the Use of a Family Brand Name Established

question 42

Multiple Choice

_____ involves the use of a family brand name established in one product class as a vehicle to enter another product class.

• A)Local branding
• B)Brand extension
• C)Line extension
• D)Individual branding

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Definitions:

Dividend Payment

A disbursement of a portion of a company's earnings decided by the board of directors to its shareholders.

Residual Dividend Policy

A strategy where dividends are paid to shareholders from the leftover or residual earnings after all operational and expansion costs are covered.

Target Capital Structure

The ideal mix of debt, preferred stock, and common equity that a company aims to hold to minimize its cost of capital.

Forecasted Net Income

An estimated calculation of a company's earnings after all expenses and taxes have been subtracted from revenue for a given future period.