Which of the Following Statements Is True of the Blue

question 6

Multiple Choice

Which of the following statements is true of the blue ocean strategy?

• A)It disrupts an existing market by displacing an earlier technology.
• B)It relies on its existing knowledge of products to improvise on new features.
• C)It uses low-end disruptive innovations to compete in the market.
• D)It creates new demand in an uncontested market space.

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Definitions:

Accumulated Depreciation

The complete tally of depreciation charges applied to a fixed asset since its initial usage.

Commercial Substance

Commercial substance refers to a transaction that significantly changes the economic position or cash flows of a business, going beyond a mere formal exchange.

Straight-Line Method

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

Residual Value

The estimated value of an asset at the end of its useful life.