Which of the Following Is a Difference Between Experiential and Compression

question 112

Multiple Choice

Which of the following is a difference between experiential and compression approaches to innovation?

• A) Experiential approach is used in fast-growing environments, whereas compression approach is used in highly uncertain environments.
• B) Experiential approach is used in periods of incremental change, whereas compression approach is used in periods of discontinuous change.
• C) Experiential approach is used to establish a new dominant design, whereas compression approach is used to improve the function of an existing dominant design.
• D) Experiential approach is used to shorten the time of individual steps in the innovation process, whereas compression approach is used to test the improved product or service prototype.

---

Definitions:

Straight-line Method

A method of calculating depreciation by evenly spreading the cost of an asset over its expected useful life.

Serial Bond

A type of bond that matures in installments over a period of time rather than having a single maturity date.

Principal

The initial amount of money borrowed or invested, excluding any interest or dividends.

Installments

Regular, often monthly, payments made towards settling a debt or purchasing a product over time.