What Is the Term Used for the Process by Which

question 143

Multiple Choice

What is the term used for the process by which an entrepreneur creates or recognizes a new and better product, acquires it, and brings it to market, making older substitutes obsolete?

• A)creative destruction 
• B)innovation 
• C)the substitution effect 
• D)backward-bending innovation

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Definitions:

Income Statement

A financial report that shows a company's revenues and expenses over a specified period of time, resulting in net profit or loss.

Vertical Analysis

A technique in analyzing financial statements, where each item in the primary categories of assets, liabilities, and equity on a balance sheet is expressed as a ratio of the overall category total.

Solvency Analysis

An assessment of a company's ability to meet its long-term financial obligations and continue its operations.

Quick Assets

Cash and other current assets that can be quickly converted to cash, such as marketable securities and receivables.