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:

State Regulations

State regulations are legal requirements established by individual states that govern the operation of businesses, aiming to protect the public interest.

Corporations

Legal entities that are separate and distinct from their owners, providing limited liability protection, and have the ability to raise capital through the issuance of stocks.

Proprietorships

Proprietorships are businesses owned and operated by a single individual, where there is no legal distinction between the owner and the business entity.

Partnerships

A legal form of business operation between two or more individuals who share management and profits.