The Diffusion of an Innovation May Be Difficult to Accomplish

question 173

Multiple Choice

The diffusion of an innovation may be difficult to accomplish because

• A)it lacks the support and commitment of top management.
• B)the setting of the pilot project may differ significantly from other units in the organization.
• C)union resistance.
• D)management reward systems tend to concentrate on traditional performance measures.
• E)All of the above

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Definitions:

Initial Investment

The initial sum of money spent on starting a project, purchasing an asset, or establishing a business venture.

Annual Cash Inflow

Annual cash inflow is the total amount of money received by an individual or organization in one year from various sources, such as sales, investments, or financing activities.

Payback Method

A capital budgeting technique that calculates the time required for an investment to generate cash flows sufficient to recover its initial cost.

Time Value of Money

The principle that holding money now is more valuable than possessing the same sum at a later date because of its current potential to generate earnings.