"Creative destruction" is when:
A) The creative process becomes too important to an organization and they forget their core business.
B) New, creative organizations drive older, less efficient organizations out of business.
C) An organization's own innovations make its existing product lines obsolete.
D) Entrepreneurs are forced to start their own companies.

Question

Quizplus · Accepted Answer

Creative destruction refers to the process by which new and innovative companies or technologies disrupt and displace older, less efficient ones. This is often seen as a necessary part of progress and economic growth, but can also result in job loss and other negative effects. Option A is incorrect because it describes a situation where the creative process becomes too important, rather than disrupting existing businesses. Option C is partially correct, but the key aspect of creative destruction is the emergence of new entities rather than an organization making its own product lines obsolete. Option D is also incorrect, as entrepreneurs may start their own companies for a variety of reasons unrelated to creative destruction.

"Creative Destruction" Is When