Question

Capico is a pharmaceutical company. The company has its factory outlets in various countries and is currently not planning on an expansion. In fact, it wants to invent a new drug by which it can stay ahead of its competitors. Why does Capico require credit?
A.
for research and development
B.
for buying a new premise
C.
for setting operation in a new country
D.
for hiring new staff
E.
for paying electricity bills

Answer 1

Capico will need credit for Research and development as it should research on the new drug and also study about its competitors

Answer 2

Answer:

The correct answer would be option A, For Research and Development.

Explanation:

Capico company is a large organization in the field of pharmaceuticals. They have their factory outlets in most of the countries. They are not planning any more expansion at the moment, rather they are trying to find out ways to invent new drug by which they can stay ahead of their competitors. For this purpose, they need credit. They need the money in order to take out the Research and Development activities. When they use the credit in R&D, they would be able to invent something which will make them more competitor for their counterparts.