What Is the Primary Difference Between an Innovator and an Early

question 50

Multiple Choice

What is the primary difference between an innovator and an early adopter?

• A)Early adopters are much the same as innovators except that they (as a group) have higher average salaries and more education than innovators.
• B)Innovators are more risk adverse than early adopters.
• C)Innovators are more likely to accept risk than early adopters.
• D)Innovators are less socially active than early adopters, who tend to be the true trendsetters of a society.

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Definitions:

Incremental Cash Flows

The additional cash flow a company receives from taking on a new project, crucial for analyzing the profitability of the investment.

Stand-Alone Cash Flows

Cash flows that a specific project is expected to generate, considered independently from the company's other cash flows.

Net Present Value

A financial metric that calculates the present value of all future cash flows associated with a project or investment, minus the initial investment cost, used to assess its profitability.

Net Working Capital

The disparity between an organization's immediate assets and its short-term obligations, showcasing its ability to cover short-term debts.