Use the Information for the Question(s)below

question 77

Essay

Use the information for the question(s)below.
Big Cure and Little Cure are both pharmaceutical companies.Big Cure presently has a potential "blockbuster" drug before the Food and Drug Administration (FDA)waiting for approval.If approved,Big Cure's blockbuster drug will produce $1 billion in net income for Big Cure.Little Cure has 10 separate less important drugs before the FDA waiting for approval.If approved,each of Little Cure's drugs would produce $100 million in net income for Little Cure.The probability of the FDA approving a drug is 50%.
-Which pharmaceutical company faces less risk?

---

Definitions:

General Partners

Individuals who participate in the management of a partnership and have unlimited liability for its debts.

Securities Fraud

A type of serious white-collar crime that involves deceiving investors or manipulating financial markets.

Limited Partnership

A form of partnership consisting of at least one general partner, who manages the business and has unlimited liability, and one or more limited partners, who have limited liability.

Managerial Powers

The authorities vested in managers of an organization to make decisions, guide operational practices, and direct the workforce towards achieving the firm's objectives.