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:

TIPS Bond

Treasury Inflation-Protected Securities, a type of U.S. government bond designed to help investors protect against inflation by adjusting the principal value based on changes in the consumer price index.

Coupon Rate

The percentage of a bond's face value that is annually paid as interest by the bond.

Par Value

The nominal value of a bond or the stated value of stock as documented in the company's charter, frequently utilized in official paperwork.

Ask Price

The lowest price a seller is willing to accept for an asset in the financial markets; it contrasts with the bid price, which is the highest price a buyer is willing to pay.