Question 21 (2 points)

Assume that you are analyzing two firms, both of which are enjoying high growth. The first firm is EarthLink Network, an internet service provider, which operates in an environment with extraordinary competition and little barriers to entry. The second firm is Biogen, a bio-technology firm, which is enjoying growth from two drugs to which it owns patents for the next decade. Assuming that both firms are well-managed, which of the two firms would you expect to have longer high growth period?

Question 21 options:

Earthlink Network

Biogen

Both should have the same length of the high growth period

It is impossible to tell