Which of the Following Statements Is True of Dominant Design

question 15

Multiple Choice

Which of the following statements is true of dominant design?

• A) It is not possible to have legally induced adherence to a dominant design.
• B) When a firm's technology is locked in as the dominant design of a market, it earns low rewards.
• C) A firm that supports a technology that is chosen as the dominant design is in a poor position to shape the evolution of the industry.
• D) A firm may find itself locked out of the market if it is unable to adopt the dominant technology.

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Definitions:

Present Value

The current worth of a future sum of money or stream of cash flows given a specified rate of return, often used in the time value of money calculations.

Compounded Annually

Interest calculated on the initial principal, which also includes all of the accumulated interest from previous periods on a loan or deposit.

Inheritance

Wealth or attributes passed on to heirs upon the death of an individual.

Lump Sum

A lump sum is a single payment of money, as opposed to a series of payments made over time.