Which of the Following Is a Potential Risk of a Brand

question 21

Multiple Choice

Which of the following is a potential risk of a brand umbrella?

• A)The brand umbrella reduces the incumbents sunk cost of introducing a new product
• B)The umbrella brand may help the incumbent navigate the vertical chain
• C)The brand umbrella allows an incumbent offset uncertainty about the quality of a new product
• D)A brand umbrella may make suppliers and distributors more willing to enter relationship specific investments in or sell credit to incumbents
• E)If a new product under the umbrella fails,consumers may become disenchanted with the entire brand

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Definitions:

Income Inequality

The unequal distribution of income among individuals or households within a population.

Goods And Services

The physical items (goods) and activities or benefits (services) that fulfill consumer needs and wants.

Progressive Tax

At the individual level, a tax whose average tax rate increases as the taxpayer’s income increases. At the national level, a tax for which the average tax rate (= tax revenue/GDP) rises with GDP.

Average Tax Rate

Total tax paid divided by total taxable income or some other base (such as total income) against which to compare the amount of tax paid. Expressed as a percentage.