(b) Explain one advantage and one disadvantage for CH of having a mission statement. (c) Explain two possible external sources of finance CH could use to continue production of Copper Health (CH) was the market leader in the production of anti-venom vaccines to treat poisonous snake bites. CH's mission - influenced heavily by corporate social responsibility (CSR) - is to put customers first and profits second in the treatment of snake bites. lth (CH) recently announced that it will no longer produce anti-venom vaccines. Several large Mexican, Despite 100000 deaths worldwide each year from snake bites and 400000 serious injuries, CH Brazilian and Indian pharmaceutical companies have entered the market selling anti-venom vaccines at a much lower price than CH. A spokesperson for CH said: We will remain a private limited company where corporate social responsibility (CSR) remains an important driving force for our mission. Our medical research is only financed from retained profit. When the lower-priced competition arrived, our sales and profits of anti-venom vaccines decreased significantly. Treating snakebites no longer makes financial sense. Instead, the technology used to produce anti-venom vaccines will be used to research and develop (R&D) other life-saving vaccines". A non-governmental organization (NGO) has demanded action. "CH is the largest manufacturer of anti-venom vaccines in the world. Although CH's competitors are increasing their production of anti-venom vaccines they will not be able to produce enough to satisfy demand for the next two years. There will be a major shortage. This will result in many life- threatening injuries and deaths." The non-governmental organization (NGO) has unged CH to seek new sources of finance to continue the production of the anti-venom vaccine. (Source O Intermational taccalsureate Organiation 2019 anti venom: a medication made from antibodies that is used to treat venomous bites and stings (a) Define the term retained profit. anti-venom vaccines. (d) Discuss CH's decision to stop producing anti-venom vaccines,
(b) Explain one advantage and one disadvantage for CH of having a mission statement. (c) Explain two possible external sources of finance CH could use to continue production of Copper Health (CH) was the market leader in the production of anti-venom vaccines to treat poisonous snake bites. CH's mission - influenced heavily by corporate social responsibility (CSR) - is to put customers first and profits second in the treatment of snake bites. lth (CH) recently announced that it will no longer produce anti-venom vaccines. Several large Mexican, Despite 100000 deaths worldwide each year from snake bites and 400000 serious injuries, CH Brazilian and Indian pharmaceutical companies have entered the market selling anti-venom vaccines at a much lower price than CH. A spokesperson for CH said: We will remain a private limited company where corporate social responsibility (CSR) remains an important driving force for our mission. Our medical research is only financed from retained profit. When the lower-priced competition arrived, our sales and profits of anti-venom vaccines decreased significantly. Treating snakebites no longer makes financial sense. Instead, the technology used to produce anti-venom vaccines will be used to research and develop (R&D) other life-saving vaccines". A non-governmental organization (NGO) has demanded action. "CH is the largest manufacturer of anti-venom vaccines in the world. Although CH's competitors are increasing their production of anti-venom vaccines they will not be able to produce enough to satisfy demand for the next two years. There will be a major shortage. This will result in many life- threatening injuries and deaths." The non-governmental organization (NGO) has unged CH to seek new sources of finance to continue the production of the anti-venom vaccine. (Source O Intermational taccalsureate Organiation 2019 anti venom: a medication made from antibodies that is used to treat venomous bites and stings (a) Define the term retained profit. anti-venom vaccines. (d) Discuss CH's decision to stop producing anti-venom vaccines,
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question

Transcribed Image Text:(b) Explain one advantage and one disadvantage for CH of having a mission statement.
(c) Explain two possible external sources of finance CH could use to continue production of
Copper Health (CH) was the market leader in the production of anti-venom* vaccines to treat
(CSR) – is to put customers first and profits second in the treatment of snake bites.
poisonous snake bites. CH's mission - influenced heavily by corporate social responsibility
Despite 100000 deaths worldwide each year from snake bites and 400000 serious injuries, CH
recently announced that it will no longer produce anti-venom vaccines. Several large Mexican,
Brazilian and Indian pharmaceutical companies have entered the market selling anti-venom
5. Copper Health (CH)
vaccines at a much lower price than CH.
A spokesperson for CH said: "We will remain a private limited company where corporate
Social responsibility (CSR) remains an important driving force for our mission. Our medical
research is only financed from retained profit, When the lower-priced competition arrived,
our sales and profits of anti-venom vaccines decreased significantly. Treating snakebites no
longer makes financial sense. Instead, the technology used to produce anti-venom vaccines
will be used to research and develop (R&D) other life-saving vaccines".
A non-governmental organization (NGO) has demanded action. "CH is the largest
manufacturer of anti-venom vaccines in the world. Although CH's competitors are increasing
their production of anti-venom vaccines they will not be able to produce enough to satisfy
demand for the next two years. There will be a major shortage. This will result in many life-
threatening injuries and deaths."
The non-governmental organization (NGO) has urged CH to seek new sources of finance to
continue the production of the anti-venom vaccine.
(Source: O Intemational Baccalsureate Organiuation 2019
* anti-venom: a medication made from antibodies that is used to treat wenomous hitoa
stings
(a) Define the term retained profit.
anti-venom vaccines.
(d) Discuss CH's decision to stop producing anti-venom vaccines,
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