Creative Destruction Occurs When ________

question 106

Multiple Choice

Creative destruction occurs when ________.

• A)disruptive innovations threaten established players
• B)sustaining technologies replace old procedures and processes
• C)bad industrial practices are eradicated through government regulations
• D)new products or services are introduced by underperforming players

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Definitions:

Additional Capital

Extra funds injected into a business or investment, beyond the initial capital.

Small Business Administration Loan

A type of loan offered by the Small Business Administration (SBA) to help small businesses get started or expand with less stringent qualifying criteria than conventional loans.

Bank Loan

A sum of money lent by a bank to an individual or organization under the agreement that it will be repaid with interest.

Sole Proprietorship

A business structure in which a single individual both owns and operates the business, bearing full responsibility for its debts and obligations.