Which of the Following Is Not Characteristic of a Disruptive

question 3

Multiple Choice

Which of the following is not characteristic of a disruptive innovation?

• A) It is usually more sophisticated technologically.
• B) It appeals to less demanding customers.
• C) It is typically a less expensive solution for meeting a need.
• D) It usually takes root in a new market or the low-end of an existing market.

---

Definitions:

Commercial Substance

Commercial substance is a concept that a transaction significantly changes the economic position or cash flows of a company, beyond the mere transfer of assets or obligations.

GAAP

Generally Accepted Accounting Principles, a standard framework of guidelines for financial accounting that includes the details, complexities, and legalities of business and corporate accounting.

Intangible Assets

Intangible assets are non-physical assets having a useful life greater than one year, such as patents, trademarks, and goodwill, that a company owns and can create economic benefit.

IFRS

International Financial Reporting Standards, a set of global accounting standards for financial reporting.