Which of the Following Statements Is TRUE of a Brand

question 31

Multiple Choice

Which of the following statements is TRUE of a brand extension strategy?

• A) Brand extension cuts the costs and risks of introducing new products.
• B) It is used by firms that have a weak brand name.
• C) It is a strategy used by start-up firms.
• D) It refers to developing items to fill gaps in the market.
• E) Brand extension refers to creating variations of a product.

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Definitions:

Rent Expense

The cost incurred by a business to use property or equipment for operational purposes, typically reported on the income statement.

Fees Earned

Income earned from providing services, recorded as revenue in the income statement.

Correcting Entry

An entry made in accounting records to correct a previous error or adjust for discrepancies.

Journal Entry

A record in accounting that logs a transaction and shows the affected accounts in the form of debits and credits.