Solved

Eudora Inc

question 9

Multiple Choice

Eudora Inc.is a pharmaceutical laboratory involved in advanced biotechnology research,manufacturing and sales and distribution of advanced medications in growing markets.At the beginning of X1 shareholders' equity was 1,000 CU.From period X1 to period X2,production increased from 2,000 CU to 2,400 CU.Simultaneously,consumptions from third parties increased from 1,500 to 1,860.The philosophy of management is that value-added should be partitioned as follows: 50% to employees in the form of remunerations in the larger sense,5% go to paying for interest expenses,15% go to the state in the form of taxes paid,5% are set aside as a provision for price reductions for patients in developing countries who cannot afford buying the medication at the list price,and 25% go to shareholders (but no dividends are paid in either year) ,.What was the return on equity during X1 and during X2.

Definitions:

Labor Union Membership

The enrollment and participation of workers in a labor union to collectively bargain for better wages, working conditions, and benefits.

Southern States

Refers to the states located in the southern region of the United States, often characterized by distinct historical, cultural, and economic aspects.

Monopsonies

Market situations where there is only one buyer for a particular product or service, giving the buyer significant power over prices.

Professional Baseball

A sport involving professional athletes who are paid to compete in baseball, typically organized in leagues and teams across various countries.