Which of the following is true of creative destruction?
A)It makes use of illegal innovations and techniques to displace established businesses.
B)It presents newcomers with an opportunity to succeed against incumbents in an industry.
C)It happens when technologies that provide process-streamlining advantages come to the fore.
D)It increases the operational costs of the entire industry and reduces profits.

Question

Quizplus · Accepted Answer

Creative destruction refers to the process by which established businesses are replaced by new ones that offer better solutions, products, or services. This process often creates opportunities for entrepreneurs and newcomers to succeed against incumbents in an industry. It does not necessarily involve illegal innovations or techniques, nor does it always increase operational costs or reduce profits for the entire industry. Sometimes, it may happen when technologies that provide process-streamlining advantages come to the fore, but this is not always the case.

Which of the Following Is True of Creative Destruction