Question

________ is a term that denotes the set of assets and liabilities that are linked to a brand and enable it to raise a firm's valuation.

a) Trademark value-added
b) Logo equity
c) Trade name strength
d) Trademark equity
e) Brand equity

Answer 1

e) Brand equity

Brand equity is the term for the assets and liabilities linked to a brand that enhance a firm's valuation, derived from consumer recognition and trust.

Trademarks such as the Nike "swoosh" or the Chiquita label contribute significantly to this brand equity. These can be renewed indefinitely, ensuring ongoing brand value.

Step-by-step explanation:

The term that denotes the set of assets and liabilities linked to a brand, which enables it to raise a firm's valuation is e) Brand equity.

This concept refers to the value a brand adds to a product or service beyond the functional benefits provided. This value is derived from consumer perception, recognition, and trust in the brand, which can significantly increase a company's assets.

For instance, well-recognized trademarks like the Chiquita bananas label, Chevrolet cars, or the Nike "swoosh" add immense brand equity to these products because of their strong brand associations and consumer loyalty.

With about 1.9 million trademarks registered with the U.S. government, a trademark becomes an asset that helps firms establish a unique identity in the marketplace.

These trademarks can be renewed indefinitely as long as they remain in active use, continuing to contribute to the brand equity of the firm.