In the Context of the Steps of the Innovator's Imperative

question 15

Multiple Choice

In the context of the steps of the innovator's imperative, which of the following is a difference between going local and reaching out?

• A) Going local involves integrating acquired new knowledge with the local knowledge base, whereas reaching out involves questioning preexisting assumptions.
• B) Going local involves observing how potential clients live and work, whereas reaching out involves collaborating with individuals with whom employees have developed strong relationships.
• C) Going local is the final step of the innovator's imperative, whereas reaching out is the first step of the innovator's imperative.
• D) Going local involves approaching people at company headquarters to examine a problem from new angles, whereas reaching out involves understanding the clients.

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Definitions:

CVP Analysis

Cost-Volume-Profit Analysis, a managerial accounting method that examines the impact of varying levels of costs and volume on operating profit.

Manufacturing Costs

These are expenses directly related to the production of goods, including labor, materials, and overhead.

Selling

The process of promoting and transferring goods or services to a buyer in exchange for money.

Contribution Margin Ratio

The percentage of each dollar of sales that is available to apply to fixed costs and contribute to net income; calculated as unit contribution margin divided by unit selling price.