Why Is Innovation a Key Component of a Manager's Job

question 117

Multiple Choice

Why is innovation a key component of a manager's job in today's business environment?

• A) Innovation keeps employees on their toes.
• B) Innovation gives companies a "fresh" image without changing much real substance.
• C) New approaches are always superior to old approaches.
• D) Innovation gives an organization an edge over its competition.

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Definitions:

Assets

Economic resources or owned items of value that an individual, corporation, or country possesses, expected to provide future benefits.

Net Income

Net income refers to the total earnings of a company once all costs, expenses, and taxes are deducted from the overall revenue.

Debt-to-Total-Assets Ratio

The debt-to-total-assets ratio measures the percentage of a company's assets financed by creditors, indicating the degree of financial leverage.

Du Pont Equation

A formula that breaks down the components of a company's return on equity into three parts: operating efficiency, asset use efficiency, and financial leverage.