According to Christensen, Companies May Have Placed Too Great an Emphasis

question 169

Short Answer

According to Christensen, companies may have placed too great an emphasis on satisfying customers' ______ needs, while neglecting to adopt new disruptive technology that will meet customers' future needs.

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Definitions:

Investment

The process of distributing funds with the goal of earning revenue or gains.

Acid Test Ratio

A financial metric that measures a company's ability to pay off its short-term liabilities with its quick assets.

Current Liabilities

Short-term financial obligations that are due within a year or within the operating cycle.

Average Inventory

The inventory average calculated by summing each inventory valuation (determined by physical inventory) and dividing by the number of physical inventories over a specified period of time; average annual inventory equals (beginning inventory value plus ending inventory value) divided by 2.