Which Statement Is Correct Concerning the Role of Innovation for Small

question 45

Multiple Choice

Which statement is correct concerning the role of innovation for small businesses?

• A) Inc. magazine reports that 13 of 30 company founders reported that their business turned out to be nothing like their original venture concept.
• B) Studies have shown that small entrepreneurial firms produce 95% as many innovations per employee as large firms.
• C) According to Clayton Christensen, 60% of all new products end up failing or performing well below expectations.
• D) According to Clayton Christensen, 93 % of all innovations that eventually became successful started out in the wrong direction.

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Definitions:

Credit

An accounting entry that increases liabilities and equity accounts or decreases assets and expense accounts, recorded on the right side of a ledger.

Defective Goods

Items that fail to meet quality standards due to flaws or faults, rendering them unsaleable or requiring correction.

Credit Terms

Conditions under which credit is extended by a lender to a borrower, including interest rate, repayment schedule, and other terms of a credit agreement.

Accounts Payable

Amounts a company owes to its creditors for goods or services that have been delivered or used but not yet paid for.