The Examples of IBM Developing Its PC and Lockheed's Skunk

question 85

Multiple Choice

The examples of IBM developing its PC and Lockheed's skunk work practice illustrate:

• A)Examples of incubating capabilities in separate organizational units
• B)Examples of technological innovations
• C)Examples of tensions between the corporate headquarters and a specific organizational unit
• D)Only a practice shared by many other firms

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Definitions:

Lenders' Return

The profit or interest earned by lenders for providing funds to borrowers, reflecting the compensation for the risk of lending and the time value of money.

Equity Investment

A financial contribution into shares of a company, granting the investor ownership rights and potential profit shares.

WACC

The Weighted Average Cost of Capital, a calculation of a firm's capital cost that weighs each category of capital (equity, debt, etc.) proportionally.

Risk Level

A measure of the potential for loss in an investment or business decision.