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Use the Information Given Below to Answer the Following Questions

question 83

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Use the information given below to answer the following questions. Scenario B. Chem-Free Natural Pharmaceuticals has completed a SWOT analysis as part of their ongoing strategic planning process. They have collected the following information:
1. New regulations have been passed limiting their ability to sell certain formulations over the counter.
2. As compared to their competitors, their management team is by far the best in the industry.
3. They have fallen behind in research and development in the last few years.
4. More people are becoming interested in natural alternatives to traditional chemical pharmaceuticals; this trend is expected to continue over the next decade.
5. The company has inadequate financial resources to invest in their operations.
-In the context of the given scenario, which of the following is a strength of Chem-Free Natural Pharmaceuticals?


Definitions:

Cash Dividend

A payment made by a company out of its earnings to shareholders, typically in the form of cash.

Dividends Payable

A liability recorded on a company's balance sheet representing the amount of dividends it owes to shareholders.

Retained Earnings

Profits that a company has decided to keep and reinvest in the business, rather than distribute to shareholders as dividends.

Contra-stockholders' Equity

An account that reduces the total amount of stockholders' equity, such as treasury stock or accumulated deficits.

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