Several years ago, The Wall Street Journal reported that the winner of the Massachusetts State Lottery prize had the misfortune
to be both bankrupt and in prison for fraud. The balance of the prize was $9,420,713, to be paid in 19 equal annual installments (There were 20 installments, but the winner had already received the first payment). The bankruptcy court judge ruled that the prize should be sold off to the highest bidder and the proceeds to be paid to the creditors. If the interest rate was 8%, how much would you have been prepared to bid for the prize
The correct answer is letter "A": family branding.
Explanation:
Family branding is a strategy entrepreneurs follow by naming the same or partly equal different businesses with diverse markets to take advantage of the reputation one of those businesses have obtained. The naming is legal and in most cases represents a partnership between those businesses or a license given by the main company to allow others to use part of the same name in exchange for a fee.