Because of the Way the FDA Reviews and Approves OTC

question 15

Multiple Choice

Because of the way the FDA reviews and approves OTC drugs,

• A)each different brand is required to contain unique ingredients.
• B)various brands of a given type of remedy usually contain the same few active ingredients.
• C)each type of drug is limited to only a single active ingredient.
• D)it is impossible to tell from the label what each product's active ingredients really are.

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Definitions:

Sunk Cost

Expenses that have already been incurred and cannot be recovered, and should not influence future business decisions.

Operating Cash Flow

The cash generated by a company's normal business operations, indicating whether a company can maintain or grow its operations without external financing.

Capital Cost Allowance

A tax deduction in some jurisdictions that allows businesses to depreciate the cost of tangible and intangible assets over time.

Weighted Average Cost of Capital (WACC)

The average rate of return a company is expected to pay to its security holders to finance its assets, weighted by the proportion of equity and debt in the company’s capital structure.