The Lower Price of Generics Is Made Possible by Lower-Cost

question 53

True/False

The lower price of generics is made possible by lower-cost labeling and packaging and minimal advertising, and sometimes lower-quality ingredients.

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Definitions:

Retained Earnings

The remaining net income for the company after distributing dividends to its shareholders.

Non-controlling Interest

An ownership interest in a subsidiary that is not significant enough to allow the holder to control or influence its policies.

Available-for-sale

A classification of financial assets indicating they can be sold in the future, not held to maturity or for trading immediately.

Derecognition

The removal of an asset or liability from a company's balance sheet when it is no longer controlled or owes it.