Lowland Corp

question 116

Multiple Choice

Lowland Corp. devised a Wi-Fi based home security system that was not very popular initially. However, a few years later, the technology was in high demand in the market. This is an example of

• A)disruptive innovation.
• B)contracted development.
• C)upward innovation.
• D)a product champion.
• E)technology followership.

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Definitions:

Weighted Average

A calculation that takes into account the varying degrees of importance of the numbers in a data set, providing a measure that reflects the significance of each value.

Specific Costs

Costs that can be directly attributed to a particular project, department, or activity.

Required Return

The minimum return that keeps an investor in a particular stock. Generally a function of the risk perceived in the investment.

Target Capital Structure

The ideal mix of debt, equity, and other financing sources a company aims to maintain over time.