Industries Such as Pharmaceuticals Earn Very High Returns on Investment

question 18

Multiple Choice

Industries such as pharmaceuticals earn very high returns on investment. Such industries

• A)tend to be protected from competition by legal restrictions.
• B)can only maintain such high returns for short periods.
• C)always exist when intangible products are traded.
• D)tend to have high entry barriers and differentiated products.

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Definitions:

Time Period

A specific duration for which financial or operational activities are measured, analyzed, and reported.

Lessee

An entity or individual that leases or rents property or equipment from another.

Operating Lease

A leasing agreement allowing a lessee to use an asset without owning it, typically with shorter terms than a capital lease.

Ownership

The legal right or interest in something, often involving assets like property, businesses, or investments.