A Factor Favoring the Success of Disruptive Innovation Is That

question 27

Multiple Choice

A factor favoring the success of disruptive innovation is that

• A) incumbent firms are slow to change.
• B) new entrants have highly formal organizational structures and processes.
• C) the low end of the market is highly guarded.
• D) incumbent firms focus on radical innovation rather than incremental innovation.

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Definitions:

Cumulative Voting

A system of voting for directors of a corporation in which shareholders can concentrate their votes on one candidate, rather than having to distribute them equally among candidates.

Majority Shareholder

An individual or entity that owns more than half of a company's outstanding shares, giving them controlling interest.

Board of Directors

A group of elected or appointed members who jointly oversee the activities of a company or organization.

Voting Trust

A type of shareholder voting arrangement by which shareholders transfer their voting rights to a voting trustee.