One of the Benefits of Building a Strong Brand with High

question 43

Multiple Choice

One of the benefits of building a strong brand with high brand equity is

• A) smaller margins.
• B) a narrower distribution channel.
• C) decreased customer loyalty.
• D) brand extension opportunities.
• E) increased vulnerability to competitive actions.

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Definitions:

Quick Ratio

A measure of a company's ability to meet its short-term obligations with its most liquid assets, excluding inventory.

Debt Ratio

A leverage ratio that measures the proportion of a firm’s total assets that is acquired with borrowed funds.

Current Liabilities

Debts or obligations that a company needs to pay within one fiscal year or within its normal operating cycle.

Statement of Cash Flows

A financial document that shows how changes in balance sheet accounts and income affect cash and cash equivalents, breaking the analysis down to operating, investing, and financing activities.