MLX Drug Company would like to market a new hypertension drug.While the Food and Drug Administration (FDA)was testing the drug,it discovered that the drug produced a harmful side effect.When MLX learned of the FDA's test result,MLX abandoned its plan to produce and distribute the drug.MLX's reaction illustrates

Question

Quizplus · Accepted Answer

MLX's decision to abandon the plan to produce and distribute the drug after learning of the harmful side effect discovered by the FDA is an example of risk avoidance. Risk avoidance involves eliminating or avoiding the risk altogether by not engaging in the activity that gives rise to the risk. In this case, MLX decided not to market a drug that posed a risk to consumers, thereby avoiding the risk of harm to the public and potential legal liabilities.

MLX Drug Company Would Like to Market a New Hypertension