A Biotechnology Company Is Constantly Faced with Important Decisions That

question 56

Multiple Choice

A biotechnology company is constantly faced with important decisions that are likely to have severe consequences for the future of the company. They need to make efficient, fast decisions that set the direction of the company. The top managers should do which of the following?

• A) decentralize decision-making authority
• B) appoint lawyers to make business decisions
• C) train first-line managers to make these decisions
• D) exercise centralized decision-making authority

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Definitions:

Profit or Loss

The financial result of a company's operations and activities for a specific period, indicating the difference between revenues and expenses.

Ounce

A unit of weight used primarily in the United States, Canada, and the United Kingdom, equal to one-sixteenth of a pound or about 28.35 grams.

Futures Contracts

Futures contracts are standardized legal agreements to buy or sell a particular commodity or financial instrument at a predetermined price at a specified time in the future.

Payoff

The potential gain or loss that will result from a specific investment or decision.