In Order to Fully Realize the Gains from Entrepreneurial Innovation

question 75

Multiple Choice

In order to fully realize the gains from entrepreneurial innovation,

• A) the government should subsidize potential entrepreneurs.
• B) it must be relatively easy for people to put their ideas in motion.
• C) it must be relatively difficult to continue implementing a bad idea.
• D) both a and b must be true.
• E) both b and c must be true.

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Definitions:

Market Tests

Trials conducted to evaluate the viability of a product or service in a specific market segment by exposing it to a representative slice of potential consumers.

Sales Forecasting

The process of estimating future sales volumes to help businesses plan their inventory, cash flow, and workforce needs.

Target Costing

A pricing strategy wherein prices are determined based on what consumers are willing to pay, and then costs are worked backward to ensure profitability.

Causal Relationship

A connection between two variables where a change in one directly causes a change in the other.