Final answer:
Innovation is the primary factor in avoiding creative destruction, as it enables businesses to adapt and remain competitive against new market challenges.
Step-by-step explanation:
The primary factor in avoiding creative destruction is C. Innovation. Creative destruction refers to the process through which new innovations lead to the demise of existing companies and products because they're unable to compete. In order to avoid falling victim to creative destruction, businesses must continually innovate to improve their products and processes, adapting to the changing marketplace and consumer demands.
For example, a company investing in research and development (R&D) to evolve its products or create new ones is likely to stay competitive. Innovation ensures that the company remains relevant and does not get replaced by companies with more advanced or efficient offerings. In contrast, mergers and acquisitions, branding, and stock options are not necessarily proactive strategies for preventing declines due to new market entrants or technologies. They may complement innovation but are not direct methods for avoiding creative destruction.