The Main Intention of a Firm Engaging in Architectural Innovation

question 34

Multiple Choice

The main intention of a firm engaging in architectural innovation is to:

• A) Utilize new technology to create a new industry.
• B) Utilize existing technology to steadily improve existing products.
• C) Utilize existing technology to reconfigure products and create new markets.
• D) Utilize new technology to disrupt the market with existing products.

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Definitions:

Maturity Date

The final payment date of a loan or other financial instrument, at which point the principal (and all remaining interest) is due to be paid.

Compound Annual

The rate of return that would be required for an investment to grow from its beginning balance to its ending one, assuming the profits were reinvested at the end of each period of the investment's lifespan.

Rate of Return

The profit or deficit experienced on an investment during a particular timeframe, represented as a proportion of the investment's initial expense.

Templeton Growth Fund

A mutual fund that aims for long-term capital growth by investing primarily in the equity of companies around the world.