Which of the Following Most Directly Explains Why Pharmaceutical Giant

question 201

Multiple Choice

Which of the following most directly explains why pharmaceutical giant Pfizer offered low-income senior citizens many of its most widely used prescriptions for $15 each per month?

• A)the profit motive since aging baby boomers are a large,profitable market
• B)the social responsibility concept
• C)the necessity of matching competitors' actions
• D)new regulatory Medicare mandates as a result of the Affordable Care Act
• E)the mandate by its industry's code of ethics

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Definitions:

Exchange Notes

Financial instruments representing an agreement between parties to exchange interest payments or currency values over a set period.

Direct Write-off

An accounting method where uncollectible accounts receivable are written off directly against income at the time they are deemed irrecoverable.

Net Realizable Value

The estimated selling price of an item of inventory less any direct costs of disposal, such as sales commissions.

Allowance for Doubtful Accounts

A contra-asset account representing estimated uncollectible accounts receivable due to the customer's inability to pay.