Which of the Following Is a Difference Between Exploration and Exploitation

question 21

Multiple Choice

Which of the following is a difference between exploration and exploitation?

• A)Exploration extends the search for commercialization of new products beyond the boundaries of an organization, while exploitation limits itself to the boundary of an organization.
• B)Exploration involves adoption of a management practice, while exploitation involves implementation of a management practice.
• C)Exploration encourages creativity and developing new ideas, while exploitation implements those ideas to produce routine products.
• D)Exploration generates ideas that may meet perceived needs, while exploitation generates ideas that respond to opportunities.

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Definitions:

Complements

Products or services that are used together, such that the demand for one increases the demand for the other.

Current Margin

The present profit margin; the difference between the sales revenue and the cost of goods sold at the current time.

Desired Margin

The profit margin a company aims for over the cost of a product or service.

Increase Price

The act of raising the cost at which goods or services are sold, usually to reflect higher production costs or to gain greater profit margins.