Incremental Innovations Are Internal Innovations Because They Build on the Organization's

question 5

True/False

Incremental innovations are internal innovations because they build on the organization's existing knowledge base, whereas radical innovations are external innovations because they create new knowledge

---

Definitions:

Residual Income

The net income an entity generates above its cost of capital, effectively measuring excess profits that exceed the minimum expected return.

Divisional Operating Income

The earnings generated from the operations of a specific division within a company, excluding costs and income from other divisions or corporate activities.

Investment Turnover

A ratio that measures the efficiency of a company in using its investments to generate sales or revenue.

Operating Income

The income generated from the primary activities of a company, before subtracting any interest and tax expenses.