Which Concept Below Can Be Defined as an Effect That

question 45

Multiple Choice

Which concept below can be defined as an effect that occurs when organizations fail to keep up with emerging innovations, putting themselves in danger of missing lucrative opportunities to capitalize on them?

• A) net losses
• B) innovation sparcity
• C) organizational cultural lag
• D) idea extinction

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Definitions:

External Financing Needed

The additional funds a company requires from external sources to finance its planned activities or growth when internal cash flows are insufficient.

Profit Margin

A measure of profitability calculated as net income divided by revenues, expressed as a percentage.

Capital Intensity Ratio

A metric that measures the amount of assets required to generate one dollar of revenue; the higher the ratio, the more capital-intensive the business.

Dividend Payout Ratio

The fraction of net earnings a firm pays to its shareholders as dividends, expressed as a percentage of the company’s total net income.