If the Department of Health and Human Services Writes a Series

question 9

Multiple Choice

If the Department of Health and Human Services writes a series of rules to implement a recently passed bill designed to ensure the safety of newly approved drugs, this would be an example of which type of law?

• A) Constitutional law
• B) Legislative statute
• C) Administrative regulation
• D) Judicial law/case law

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Definitions:

Internal Rate

Typically refers to the internal rate of return (IRR), which is the discount rate that makes the net present value (NPV) of all cash flows from a particular project equal to zero.

Discount Rate

A discount rate employed to ascertain the present worth of future cash flows within discounted cash flow analysis.

Net Present Value

The difference between the present value of cash inflows and the present value of cash outflows over a period of time, used in capital budgeting to analyze the profitability of an investment or project.

Operating Assets

Assets used in the day-to-day operations of a business, such as machinery, buildings, and equipment, that contribute to revenue generation.