BUSI 352 MIDTERM REVIEW PACKAGE LIBERTY
UNIVERSITY TEST BANK SOLUTIONS 2026
◉ Schumpeterian Rents. Answer: Profits in excess of economic profits
that an innovator gets by introducing a new technology, organisational
form or marketing strategy.
◉ Innovation. Answer: Novel and useful ideas that can be implemented
to product of process which can be the modification or recombination of
existing ones.
◉ Difference between Invention and Innovation. Answer: Invention is
the discovery of a new product, process, or the modification and
recombination of existing ones. Innovation concerns the
commercialization of the invention.
◉ Architectural Innovation. Answer: The technology of the components
stays the same, but the configuration of the components is changed to
produce a new design.
◉ Radical Innovation. Answer: a new product, service, or technology
that completely replaces an existing one
◉ incremental innovation. Answer: an innovation that squarely builds on
an established knowledge base and steadily improves an existing product
or service
, ◉ disruptive innovation. Answer: an innovation that leverages new
technologies to attack existing markets from the bottom up
◉ Product Innovation. Answer: New Products
◉ Process Innovation. Answer: New ways to produce existing products
◉ Industry Life Cycle: The S-Curve. Answer: Introduction Stage,
Growth Stage, Shakeout Stage, Maturity Stage, Decline Stage
◉ Introduction Stage. Answer: the PLC stage in which a new product is
first distributed and made available for purchase
◉ Growth Stage. Answer: the PLC stage in which a product's sales start
climbing quickly
◉ Shakeout Stage. Answer: When growth and profitability are slowing
due to strong competition;
Growth has slowed;
Intense competition;
Increasing industry overcapacity;
Decreased profitability;
UNIVERSITY TEST BANK SOLUTIONS 2026
◉ Schumpeterian Rents. Answer: Profits in excess of economic profits
that an innovator gets by introducing a new technology, organisational
form or marketing strategy.
◉ Innovation. Answer: Novel and useful ideas that can be implemented
to product of process which can be the modification or recombination of
existing ones.
◉ Difference between Invention and Innovation. Answer: Invention is
the discovery of a new product, process, or the modification and
recombination of existing ones. Innovation concerns the
commercialization of the invention.
◉ Architectural Innovation. Answer: The technology of the components
stays the same, but the configuration of the components is changed to
produce a new design.
◉ Radical Innovation. Answer: a new product, service, or technology
that completely replaces an existing one
◉ incremental innovation. Answer: an innovation that squarely builds on
an established knowledge base and steadily improves an existing product
or service
, ◉ disruptive innovation. Answer: an innovation that leverages new
technologies to attack existing markets from the bottom up
◉ Product Innovation. Answer: New Products
◉ Process Innovation. Answer: New ways to produce existing products
◉ Industry Life Cycle: The S-Curve. Answer: Introduction Stage,
Growth Stage, Shakeout Stage, Maturity Stage, Decline Stage
◉ Introduction Stage. Answer: the PLC stage in which a new product is
first distributed and made available for purchase
◉ Growth Stage. Answer: the PLC stage in which a product's sales start
climbing quickly
◉ Shakeout Stage. Answer: When growth and profitability are slowing
due to strong competition;
Growth has slowed;
Intense competition;
Increasing industry overcapacity;
Decreased profitability;
