In Organizational Markets, Innovator and Early Adopter Companies Tend to Be

question 105

Multiple Choice

In organizational markets, innovator and early adopter companies tend to be which of the following?

• A)Larger and more profitable companies if the innovation is costly and have more progressive, better-educated management
• B)Smaller and more flexible companies
• C)Large companies with highly structured new product development processes
• D)Small companies who are in the technology industry, whereby companies have to adopt the latest trend or face the risk of being left with an obsolete technology

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Definitions:

Times Interest Earned Ratio

A financial metric used to measure a company's ability to meet its debt obligations, calculated by dividing earnings before interest and taxes (EBIT) by interest expenses.

Debt-To-Equity Ratio

A ratio demonstrating the balance between shareholder equity and debt in funding a company's assets.

Return On Equity

A measure of financial performance calculated by dividing net income by shareholders' equity, indicating how efficiently a company uses its equity investment.

Price/Earnings Ratio

A valuation metric for stocks calculated by dividing the market price per share by the earnings per share, indicating how much investors are willing to pay per dollar of earnings.