The earning potential of a brand over a 12-month period is known as its

C) brand value

Explanation:

Brand value is a financial estimate of how much your brand is worth. It differs from brand equity because consumers assign brand equity since it is how much your brand is worth to them. But they are extremely related since your brand value depends on your brand equity. Brand value is not recorded in the balance sheet because both US GAAP and IFRS forbid it.

The only way you can include brand value in the balance sheet is if your company bought a brand or received a brand as collateral. E. g. in order to avoid a government bailout, Ford borrowed all the money it could and even used its brand and logo as collateral. But accounting standards prohibit that you include your own brand in your balance sheet.

Correct/Complete Question:

The earning potential of a brand over a 12-month period is known as its

A. price potential.

B. asset base.

C. brand value.

D. market share.

E. market equity

Answer:

C, brand value

Explanation:

Simply put and shortly, brand value is the actual, potential or calculated worth of a brand. Brand value is usually based on the amount that is on the balance sheet.

Cheers.