_____________Is the Phase of a Technology Cycle Characterized by Technological

question 51

Multiple Choice

_____________is the phase of a technology cycle characterized by technological substitution and design competition.

• A) Technological adaptation
• B) The era of dominant design
• C) The technological growth stage
• D) Change substitution
• E) Discontinuous change

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Definitions:

Variances

Differences between planned financial outcomes and actual results, used in budgeting and financial management to analyze performance.

Abandonment Option

A form of real option in capital budgeting, giving a company the ability to abandon or terminate a project during its life if it becomes unprofitable.

Discount Rate

A rate of interest utilized within discounted cash flow evaluations to ascertain the present worth of forthcoming cash flows.

Decision Tree

A timeline representation used in planning projects subject to multiple outcomes. Wherever an event has several outcomes, the timeline branches into as many paths, each with a probability. The result is a proliferation of possible paths to completion, each representing an outcome, its financial implication, and its probability. Hence, the decision tree specifies a probability distribution for the project’s overall financial outcome.