I Am Starting a Company That Produces a New Screening

question 8

Multiple Choice

I am starting a company that produces a new screening test for pancreatic cancer. This disease is present in 1 in every 10,000 individuals, and my marker does not miss any of them! In testing normals, I find only 1 of every 100 individuals positive for my marker. There really is not a great chemotherapy for pancreatic cancer no matter when we find it. I am looking for venture capital for my test. Will you call your rich Uncle Freddie and tell him to invest?

• A)No, the costs would be too high to screen 10,000 people to find one cancer.
• B)No, the costs would be too high to scare 100 people for every one cancer I found.
• C)No, there is no good chemotherapy for pancreatic cancer, so why find it?
• D)all of the above

---

Definitions:

Depreciation

The process of allocating the cost of a tangible asset over its useful life, representing the asset's consumption or wear and tear over time.

Interest Paid

The cost incurred for borrowing money, typically expressed as a percentage of the principal, payable to the lender.

Net Working Capital

The gap between an organization's present assets and its current debts, highlighting the business's short-term financial well-being and effectiveness in its operations.

Non-Eligible Dividends

Dividends that are paid out from earnings that have not been taxed at the corporate level, often subject to different tax treatment at the recipient's level.