The book features a standardized model (M. Porter) which displays how a company's economy moves through three stages - factor-driven economy, effective-driven economy and innovation-driven economy. Each stage is shown in relation to the impact entrepreneurship has on it. What does this curve reflect?
A) that entrepreneurship impacts each stage equally
B) that entrepreneurship has the most impact in the effective-driven economy
C) that entrepreneurship has the most impact in the factor-driven economy
D) that entrepreneurship has most impact in an innovation-driven economy
E) that entrepreneurship does not have much impact

Question

Quizplus · Accepted Answer

The curve reflects that entrepreneurship has most impact in an innovation-driven economy, as this stage is characterized by the creation of new products and services, which is a key aspect of entrepreneurship. The factor-driven economy is characterized by low wages and low-cost production, where entrepreneurship may have some impact but not as much as in the later stages. The effective-driven economy is focused on efficiency and optimization, where entrepreneurship may play a role in improving processes, but again not as much as in the innovation-driven economy. Therefore, choice D is the most accurate.

The Book Features a Standardized Model (M