Biotech Firms Require Large Amounts of Cash If Their Drugs

question 42

True/False

Biotech firms require large amounts of cash if their drugs succeed in gaining regulatory approval.Therefore,these firms often have substantial cash holdings to fund their possible investment needs.

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Definitions:

Groupthink

A psychological phenomenon that occurs within a group of people, in which the desire for harmony and conformity results in irrational or dysfunctional decision-making outcomes.

Groupthink Theory

A mental occurrence within a group where the pursuit of agreement or uniformity leads to illogical or ineffective choices.

Group Polarization

The tendency for a group to make decisions that are more extreme than the initial inclination of its members, either more conservative or riskier.

Risky Shift

The phenomenon where groups make riskier decisions than individuals would.