Which of the Following Is a Difference Between Sustaining Innovations

question 4

Multiple Choice

Which of the following is a difference between sustaining innovations and disruptive innovations?

• A) Sustaining innovations are discontinuous, whereas disruptive innovations are continuous in nature.
• B) Sustaining innovations challenge current core assumptions, whereas disruptive innovations uphold traditional assumptions.
• C) Sustaining innovations improve existing products and processes, whereas disruptive innovations introduce wholly new processes and services.
• D) Sustaining innovations are product innovations, whereas disruptive innovations are operational innovations.

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Definitions:

IRRs

The Internal Rate of Return is a financial measurement utilized to assess the projected profitability of future investments.

After-Tax Cost

After-Tax Cost is the expense associated with a transaction or activity, taking into account the effect of income tax deductions or liabilities.

Tax Rate

The percentage at which an individual or corporation is taxed, which can vary according to income or profit levels.

Cost of Debt

The cost of debt is the effective rate that a company pays on its total debt, used in capital structuring decisions to evaluate the affordability of borrowing.