Successful Fast Followers Are More Innovative and Are Thus Able

question 16

True/False

Successful fast followers are more innovative and are thus able to leapfrog market pioneers and offer the market superior products.

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Definitions:

Target Cash Balance

The optimal amount of cash that a company aims to hold to meet expected transactions, precautionary, and speculative needs.

Speculative Motive

The intent to hold cash or other assets for the purpose of benefiting from future market movements.

Precautionary Motive

The desire to hold cash or liquid assets to guard against unforeseen future needs and emergencies.

Transaction Motive

The need for cash to meet immediate and anticipated demands for payment, a key reason for holding cash in business.