The Key Idea Behind Diffusion of Innovation Is That

question 219

Multiple Choice

The key idea behind diffusion of innovation is that

• A) not all consumers accept a new product at the same time; adoption of a product spreads throughout the population.
• B) once a product enters the market, the time span between awareness and purchase is incredibly short.
• C) the introduction of an entire new product class almost always diffuses the importance of its predecessor within a matter of months.
• D) adoption of a new product line does not change the diffusion rate of older lines in the market.
• E) the rate of adoption is independent of other product form innovations or competitive products in the marketplace.

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Definitions:

Impairment Test

An examination to determine if an asset's carrying amount exceeds its recoverable amount, and if so, to measure the amount of impairment loss.

Book Value

A financial measurement that calculates the value of a firm's equity as it appears on the balance sheet by subtracting liabilities from assets.

Fair Value

The estimated price at which an asset or liability could be traded in an orderly transaction between market participants at the measurement date.

Consolidation Elimination

The process of removing intra-group transactions and balances from the consolidated financial statements of a group of companies.