A Factor Favoring the Success of Disruptive Innovation Is That

question 27

Multiple Choice

A factor favoring the success of disruptive innovation is that

• A) incumbent firms are slow to change.
• B) new entrants have highly formal organizational structures and processes.
• C) the low end of the market is highly guarded.
• D) incumbent firms focus on radical innovation rather than incremental innovation.

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Definitions:

Direct Materials

Raw materials directly used in the production of goods, easily traceable to the finished product.

Indirect Materials

Materials used in the production process that cannot be directly linked to a specific product, such as lubricants for machinery.

Time Tickets

Documentation used to track the amount of time an employee spends on various tasks, often used in industries where billing is based on hours worked.

Audit Committee

A subset of a company's board of directors that is responsible for overseeing the financial reporting and disclosure process.