An Innovation's Complexity Impacts

question 9

Multiple Choice

An innovation's complexity impacts:

• A)The ease with which it can be copied
• B)The resources needed to formalize it and to establish a patent to protect it
• C)The rate of diffusion of the innovation,and its acceptance by customers
• D)The probability for a firm to innovate

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Definitions:

Present Value

The today's value of a sum of money expected in the future or successive cash flows, considering a determined rate of return.

Compound Interest

Compound interest is the interest calculated on the initial principal and also on the accumulated interest of previous periods of a deposit or loan.

Future Value

An estimated future value of a present asset, projected by applying an anticipated growth rate over time.

Present Value

Present value is the current worth of a future sum of money or stream of cash flows given a specified rate of return.