New Age Pharmaceuticals Inc

question 13

True/False

New Age Pharmaceuticals Inc. produces two limited lines of drugs—one for common maladies and one for rarer conditions and diseases. The majority of its business comes from the tried-and-true drugs that most Americans have been using for many years, but the new growth area in the pharmaceutical industry is in high-priced new drugs. New Age management believes that the company’s research-and-development operations are sufficiently effective and efficient enough to develop six new prescription drugs that will start showing a profit within 12 months of their roll-outs. Currently more than 4 million people use New Age products.
-Because it's set up to make profits while meeting people's needs,New Age stands to make larger profits when prices fluctuate.

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Definitions:

Avoid Obligations

Refers to actions or strategies individuals or entities use to legally evade fulfilling certain duties or responsibilities.

Liability Limitations

Provisions within a contract that seek to limit the amount of compensation one party can receive from another in the event of a breach or other liability.

Partnership Agreement

A contract between two or more business partners that outlines the responsibilities, profit and loss distribution, and rules and regulations of the partnership.

Limited Liability Partnership

A partnership structure where partners' personal liability for business debts is limited to the amount they invest in the business.