According to the Diffusion of Innovation Concept, Consumers Who Are

question 140

Multiple Choice

According to the diffusion of innovation concept, consumers who are venturesome, higher educated, and use multiple information sources in their adoption of products are called

• A) innovators.
• B) early adopters.
• C) the early majority.
• D) the late majority.
• E) laggards.

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Definitions:

Sustainable Growth Rate

The maximum rate at which a company can grow its sales, earnings, and dividends without having to increase financial leverage or equity financing.

Return On Equity

A financial ratio that measures the profitability of a business in relation to the amount of equity, indicating how effectively management is using shareholders’ funds.

Payout Ratio

A financial metric showing the proportion of earnings a company pays to its shareholders in the form of dividends.

Sustainable Growth Rate

The maximum rate at which a company can grow its sales, earnings, and dividends without increasing financial leverage.