Innovation leads to profitable growth if that innovation:
A)generates new profit pools.
B)increases demand for products and services.
C)attracts new competitors.
D)Both a and b

Question

Quizplus · Accepted Answer

Innovation can lead to profitable growth by generating new profit pools and increasing demand for products and services. When a company innovates to create a new product or service, they may be able to tap into new markets and create new profit opportunities. Additionally, if the innovation improves the existing product or service, it can lead to increased demand among existing customers. However, with increased success and profitability, new competitors may enter the market, which is why attracting new competitors is not a sign of profitable growth.

Innovation Leads to Profitable Growth If That Innovation