The Main Argument of Joseph Schumpeter's Idea of "Creative Destruction

question 62

Multiple Choice

The main argument of Joseph Schumpeter's idea of "creative destruction" is that

• A)the existence of monopolies leads to destruction of the environment.
• B)short-run profits created by the existence of monopolies will lead to antitrust legislation,which will force the fragmentation of monopolies into competitive industries.
• C)perfectly competitive industries are characterized by more productive innovation and productivity growth than monopolistic industries,which Schumpeter regarded as destructive.
• D)monopoly profits lead to innovation in an effort to sustain those profits.
• E)monopolies create profits for themselves at the expense of the destruction of consumer surplus.

Understand the concept of learning organizations and strategies for fostering them.

Analyze factors leading to resistance to change and strategies for overcoming it.

Describe various approaches to organizational change (attitude-centered, role-centered, etc.).

Recognize the impact of leadership actions on organizational flexibility and innovation.

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Definitions:

Note Payable

A written promise to pay a specified amount of money, typically with interest, by a certain date.

Decrease Assets

A reduction in the value or quantity of the assets owned by a company or individual.

Prepaid Insurance Account

An asset account on the balance sheet representing insurance premiums that have been paid in advance and are gradually expensed over the coverage period.

Premium

An amount paid in excess of the nominal or face value of something, often associated with insurance policies or bonds.