Amazon.com's Addition of CD's and Gifts Represents ________

question 32

Multiple Choice

Amazon.com's addition of CD's and gifts represents ________.

• A) revolutionary change
• B) an incremental innovation
• C) reengineering
• D) quantum innovation

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Definitions:

Surrogate Beta

Surrogate beta is a method used in finance to estimate the beta of a project or investment by using the beta of a similar, publicly traded company or project as a proxy.

Pure Play Method

A valuation technique that involves comparing the firm of interest to another company that has a single line of business similar to the target company.

Real Option

The right, but not the obligation, to undertake certain business initiatives, such as deferring, abandoning, expanding, staging, or contracting a project at a future date.

Capital Budgeting

The process of analyzing and ranking potential expenditures or investments that are significant in amount, to determine which projects will provide the best return.