If Bristol-Myers Squibb Discovered a Miracle Drug That Cured Some

question 122

Multiple Choice

If Bristol-Myers Squibb discovered a miracle drug that cured some forms of cancer,which theory would apply to the profits it earned?

• A)Reward for innovation.
• B)Reward for risk-taking.
• C)Monopoly profits.
• D)All of choices are true.

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Definitions:

Journal Entries

The recordation of financial transactions in a company’s accounting system that involves at least one debit and one credit entry.

Net Profit Margin

A financial ratio that shows the percentage of profit a company generates from its revenues.

Operating Income

Earnings before interest and taxes, representing the profit generated from a company's core business operations.

Net Income

The profit a company generates after all expenses, taxes, and costs have been subtracted from total revenue, indicating financial health.