Jake Is an Innovative Engineering Graduate Who Works for a Large

question 255

Multiple Choice

Jake is an innovative engineering graduate who works for a large company that makes adhesive products for commercial and consumer use. One of his primary responsibilities is to initiate and develop new products to complement the firm's current product line. Jake's company is ___________

• A) intrapreneurial
• B) entrepreneurial
• C) an outside consultant for other firms
• D) at a disadvantage because it is trying to operate like a small business

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Definitions:

Dividend Payout Ratio

The percentage of earnings paid to shareholders in dividends, indicating how much money a company returns to shareholders vs. retaining.

Internal Growth Rate

The maximum rate at which a company can expand internally without needing to obtain additional external financing.

Capital Intensity Ratio

A metric that measures the amount of capital needed per unit of output, indicating how capital-intensive a business operation is.