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Which of the Following Pair of Firms Do You Think

question 11

Essay

Which of the following pair of firms do you think should be more highly levered: A biotech firm which may need a large cash injection if its drug trials are successful,or a company with a well-established market and large cash reserves?


Definitions:

SWOT Analysis

An examination of organizational strengths and weaknesses and environmental opportunities and threats.

Sustainability

Acting in ways that support a high quality of life for present and future generations.

Wealth

The abundance of valuable resources or material possessions, or the control of such assets which enables an individual or community to sustain and improve their well-being.

Strategic Management Process

A systematic approach to planning and guiding an organization’s strategy over time.

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