Use the Information for the Question(s)below

question 77

Essay

Use the information for the question(s)below.
Big Cure and Little Cure are both pharmaceutical companies.Big Cure presently has a potential "blockbuster" drug before the Food and Drug Administration (FDA)waiting for approval.If approved,Big Cure's blockbuster drug will produce $1 billion in net income for Big Cure.Little Cure has 10 separate less important drugs before the FDA waiting for approval.If approved,each of Little Cure's drugs would produce $100 million in net income for Little Cure.The probability of the FDA approving a drug is 50%.
-Which pharmaceutical company faces less risk?

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Objectives

Specific, measurable goals that are set to be achieved within a time frame, serving as guiding principles for initiatives or projects.

Franchising

A contractual arrangement in which the franchisor provides a franchisee the right to use its name and marketing and operational support in exchange for a fee and, typically, a share of the profits.

Capital Costs

Expenditures incurred to acquire, upgrade, or maintain physical assets such as buildings, machinery, or equipment, pivotal for long-term business operations.

Human Resource

The department in an organization concerned with the recruitment, management, and direction of people who work in it.