In the 1990s, Philips Electronics Developed a New Consumer Electronics

question 9

Multiple Choice

In the 1990s, Philips Electronics developed a new consumer electronics product called the Digital Compact Cassette (DCC) player. DCC allowed users to record and playback in a new digital format; DCC was also designed to play the older, analog cassette tapes that many people own. This latter feature reflects which of the following characteristics of innovations?

• A)relative advantage
• B)communicability
• C)compatibility
• D)complexity
• E)divisibility

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Definitions:

Fair Value

The asset's selling rate or the price required to manage a liability in a procedural transaction between participants in the market during the specified measurement interval.

Common Stock

A type of equity security that represents ownership in a corporation, with holders typically having voting rights and dividend receiving potential.

Par Value

The face value of a bond or stock as stated by the issuing company, which is not indicative of its market value.

Consideration Transferred

The total amount of assets, liabilities, or equity given by an acquiring firm to obtain control of an acquired firm during a merger or acquisition.