The Following Problem Requires the Data Shown Below for a Large

question 7

Multiple Choice

The following problem requires the data shown below for a large firm (Pfizer) and a smaller firm (Immunogen) in the Chemicals & Allied Products industry:
$\begin{array}{lrrrrrrrrr}&\text {No. }&&&&&&&\text { Values}&\text {(\$mn.) }\\&\text { Bus.}&\text { ..Values}&\text { (s mn.) }&\text {at } \mathrm{Y-E}-&\text { 1999.. }&\text { 1999 Values}&(\$ \text { mn.) }&\text { at Year-End }& 2000\\\text { Company }&\text {Seg.}&\text { PP\&E }&\text {TA}&\text { Debt}&\text { BEQ}&\text { Sales}&\text { Net.Inc. }&\text {BEQ}&\text { MEQ }\\\hline \text { PFIZER } & 3 & 5,343 & 20,574 & 5,526 & 8,887 & 29,574 & 3,718 & 16,076 & 290,216 \\\text { IMMUNOGEN } & 1 & 158 & 7,17 & 0.07 & 5.3 & 11.18 & -0.24 & 154 & 822.3\end{array}$
-Which of the following factors most likely explains the difference in the profitabilities of these two firms?

• A)differential ability to secure debt financing
• B)differential economies of scale
• C)the difference in the number of business segments

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The process of identifying or acknowledging the existence of a specific group or classification within a larger context.

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