Schumpeter Stated That "The Carrying Out of New Combinations" Is

question 12

Multiple Choice

Schumpeter stated that "the carrying out of new combinations" is the trademark of innovation. He detailed this by placing new developments - innovation - in five categories. Which three DO NOT belong here?

• A) new goods, new qualities
• B) new markets
• C) new methods
• D) new meeting places
• E) new forms of organization
• F) new tax laws
• G) new support systems
• H)new sources of raw materials

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Definitions:

Accounting Gain

A financial benefit that results from selling an asset at a price higher than its book value, recognized in the financial statements of a company.

Book Value

The value of an asset according to its balance sheet account balance, taking into account the cost of the asset less any depreciation, amortization, or impairment costs.

Futures Contracts

Standardized legal agreements to buy or sell a particular commodity or financial instrument at a predetermined price at a specified time in the future.

Downside Risk

The potential for loss in an investment or the financial risk associated with the lower-than-expected return.