Joseph Schumpeter Argued That Entrepreneurs Develop New Products and Technologies

question 18

True/False

Joseph Schumpeter argued that entrepreneurs develop new products and technologies that over time make current products and technologies obsolete, and this process, which he called creative destruction, is good because it stimulates economic activity.

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Definitions:

Securities Act

Refers to the U.S. Securities Act of 1933, a federal piece of legislation enacted to regulate the securities industry and protect investors.

Effective Registration Date

The date on which a company's registration statement is declared effective by the Securities and Exchange Commission, allowing it to legally sell securities.

Prospectus

An investment document that provides details about a company or financial product, aimed at potential investors.

Registration Statement

A document submitted to securities regulators containing financial and other significant information about a company before it issues stock.