A Disadvantage of Trademarking a Firm's Product Is

question 66

Multiple Choice

A disadvantage of trademarking a firm's product is

• A)a trademark differentiates a firm's product.
• B)a trademark conveys information about the product to the public.
• C)a trademark may become so widely used to denote a particular type of product that the trademark may no longer be a legally protected brand name.
• D)a trademark does not affect demand for the firm's product.

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Definitions:

Preferred Stock

A type of share in a corporation that gives the owner a greater entitlement to the firm's earnings and assets than holders of common stock.

Dividend Growth Model

An approach to valuing a company's shares by calculating the present value of its expected dividends through discounting.

Cumulative Voting

A voting system that allows shareholders to allocate all of their votes to one candidate or distribute them among multiple candidates during an election.

Preferred Stock

A class of ownership in a corporation that has a higher claim on assets and earnings than common stock, often with dividends that are paid out before those of common shares.