Sometimes Brand Names Become Synonymous with a Product Itself

question 108

Multiple Choice

Sometimes brand names become synonymous with a product itself.If that happens,the firm:

• A) has achieved brand nirvana.
• B) could lose its trademark.
• C) should try co-branding in order to avoid brand dilution.
• D) should consider a new packaging strategy.
• E) all of these.

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Definitions:

Leverage Ratios

The ratio of loans and other investments to the firm’s capital assets.

Mortgage-backed Securities

Financial instruments created by pooling mortgages and selling the rights to the cash flows from these mortgages to investors.

Secondary Mortgage Market

A market in which mortgages originated by a lender are sold to another financial institution. In recent years, the major buyers in this market have been Fannie Mae, Freddie Mac, and large investment banks.

Lending Standards

The criteria and guidelines used by financial institutions to determine the creditworthiness of prospective borrowers and to make decisions about loan applications.