Which Statement Is Correct Concerning the Role of Innovation for Small

question 120

Multiple Choice

Which statement is correct concerning the role of innovation for small businesses?

• A)Fortune magazine reports that 93 percent of company founders reported that their business turned out to be nothing like their original venture concept.
• B)Studies have shown that small entrepreneurial firms produce 95 percent as many innovations per employee as large firms.
• C)According to Clayton Christensen,60 percent of all new products end up failing or performing well below expectations.
• D)Small entrepreneurial firms produce twice as many innovations per employee as large firms.

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Definitions:

Perpetual Inventory System

A system of inventory accounting that instantly logs inventory sales or purchases using computerized point-of-sale systems and software for enterprise asset management.

Gross Method

An accounting method where purchases are recorded at their full (gross) cost without deducting any cash discounts.

Credit Terms

Conditions under which credit is extended by a lender to a borrower, including the repayment period, interest rate, and the amount of the loan.

Sales Discounts

Reductions in the sale price offered by a seller to a buyer, typically to encourage prompt payment or in response to bulk orders.