Why Is Innovation No Guarantee of Success and Fortune for the Innovator

question 14

Multiple Choice

Why is innovation no guarantee of success and fortune for the innovator?

• A)Success depends on the value created.
• B)Implementation of innovation may be a failure due to internal organizational factors.
• C)Success depends on sufficient value being created and a sufficient portion of that value being appropriated by the innovator.
• D)Nothing is guaranteed in the corporate world and in life in general.

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Definitions:

Accounts Receivable Written Off

The removal of accounts receivable from financial records when they are deemed uncollectible, impacting the net income and asset value reported.

Sales Returns

Transactions where customers return previously purchased products, typically resulting in a refund or credit issued by the selling entity.

Factoring with Recourse

A financial transaction where a business sells its accounts receivable to a third party (factor) but remains responsible if the debtor does not pay.

Sales Return

Goods returned by the buyer to the seller due to issues like defects or dissatisfaction, reversing a portion of sales.