When an Existing Firm Creates a New Venture or Develops

question 112

Multiple Choice

When an existing firm creates a new venture or develops an innovation, it is said to be engaging in

• A) corporate emergence.
• B) transformational leadership.
• C) exceptional R&D.
• D) corporate entrepreneurship.

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Definitions:

Income Ratio

The Income Ratio is a financial metric used to assess a company's profitability by comparing its income to a particular base, such as revenue or assets.

Capital Balance

The amount of money invested in a business by its owners or shareholders, reflected in the company's balance sheet.

Revenue Accounts

These accounts track the income earned by a company from its sales or services before any deductions are made.

Expense Accounts

Accounts used to track money spent or costs incurred by a business in its operational activities.