Companies May Use Two Types of Processes That Companies Use

question 27

Multiple Choice

Companies may use two types of processes that companies use to develop product ideas: exploration and exploitation.Exploration usually involves getting out of one's usual domain and exploring new areas for ideas.In contrast,exploitation refers to finding a use for those new ideas.What type of activity is associated with the exploitation of an idea?

• A)Experimentation
• B)Play
• C)Implementation
• D)Innovation

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Definitions:

Economic Conditions

The state of the economy at a given time, including variables such as inflation, unemployment, and economic growth.

Significant Influence

The power to participate in the financial and operating policy decisions of another company, but not control them.

Voting Stock

Shares that give the holder the right to vote on corporate matters, such as electing the board of directors and approving corporate policies.

Controlling Investor

An individual or entity that holds a significant portion of a company's shares or voting rights, granting them substantial influence or control over the company's decisions and policies.