Organizations Use Brand Extension When Similar Products Are Added to an Existing

question 198

True/False

Organizations use brand extension when similar products are added to an existing product line under the same brand name. Offering additional features to a cell phone package is an example of brand extension.

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Definitions:

Minimum Rate Of Return

The lowest acceptable return on investment, beyond which investment options are not considered.

Mutually Exclusive

Situations or events that cannot occur at the same time, meaning the occurrence of one event prevents the occurrence of the other.

IRRs

Internal Rate of Return (IRR) is a metric used in financial analysis to estimate the profitability of potential investments, calculated as the discount rate that makes the net present value (NPV) of all cash flows from a particular project equal to zero.

NPVs

Net Present Values; the difference between the present value of cash inflows and the present value of cash outflows over a period of time.