Biopure Is a Company That Manufactures and Markets Oxygen Therapeutics

question 38

Multiple Choice

Biopure is a company that manufactures and markets oxygen therapeutics.Its products are Hemopure for human use and Oxyglobin for animal use.Both have been developed as alternatives to red blood cell transfusions.Which of the following would be part of Biopure's internal environment?

• A)approval by the U.S.Food and Drug Administration to allow veterinarians to use Oxyglobin
• B)a competitor developing a similar product
• C)changes in patent law
• D)the patented manufacturing process that it uses to produce Hemopure and Oxyglobin
• E)the global market for the raw materials needed to make Hemopure and Oxyglobin

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Definitions:

Cash Flows

The net amount of cash and cash equivalents being transferred into and out of a business.

Operating Activities

Activities that relate to the primary operations of the company, including cash flows from selling goods and services.

Indirect Method

A way of presenting the cash flow statement where net income is adjusted for changes in balance sheet items to calculate cash flow from operating activities.

Net Income

Represents a company's earnings after all expenses, charges, and taxes have been subtracted from total revenue, reflecting the financial health of the company.