Which of the following types of firms should expect a higher rate of return?
A) an auto dealership
B) a biotech pharmaceutical firm
C) a manufacturer of screws and bolts
D) a paper products firm
E) all of the above

Question

Which of the following types of firms should expect a higher rate of return?
A) ​an auto dealership
B) ​a biotech pharmaceutical firm
C) ​a manufacturer of screws and bolts
D) ​a paper products firm
E) ​all of the above

Quizplus · Accepted Answer

Biotech pharmaceutical firms typically require significant investment in research and development, but the potential payout for successfully bringing a new drug to market could be very high, resulting in a higher rate of return. Auto dealerships, manufacturers of screws and bolts, and paper products firms are all typically lower risk and lower return industries.

Which of the Following Types of Firms Should Expect a Higher