Which of the Following Most Directly Explains Why Pharmaceutical Giant

question 202

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 legislation
• E)the mandate by its industry's code of ethics

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Definitions:

Inventory

Materials or goods a business holds for the purpose of resale or production, representing a current asset on the balance sheet.

Operating Expenses

Regular costs incurred in the operation of a business, such as wages, utilities, and rent, excluding cost of goods sold.

Service Company

A business entity that provides services to individuals or other businesses, rather than producing goods.

Gross Profit

The financial metric calculated as sales revenue minus cost of goods sold (COGS), indicating the core profitability of a company's operations.