Which of the Following Best Describes Divisibility of an Innovation

question 143

Multiple Choice

Which of the following best describes divisibility of an innovation that influences the rate of adoption?

• A) It is the degree to which the innovation is difficult to understand.
• B) It is the degree to which the results of using the innovation can be observed or described to others.
• C) It is the degree to which the innovation appears superior to existing products.
• D) It is the degree to which the innovation may be tried on a limited basis.
• E) It is the degree to which the innovation fits the values and experiences of potential consumers.

---

Definitions:

Cash-Flow Hedge

A financial strategy used to manage risks associated with the fluctuations in cash flows due to changes in exchange rates, interest rates, or commodity prices.

Cost of the Hedge

The total expenses associated with establishing and maintaining a hedge, including transaction fees and the difference in interest costs.

Forward Contract

A personalized agreement where two parties agree to buy or sell an asset at an agreed-upon price at a later date.

Derivative Instrument

A derivative instrument is a financial contract whose value is dependent on the performance of underlying assets, indexes, or rates.