How Did General Motors (GM) Innovate in the Automobile Industry

question 36

Multiple Choice

How did General Motors (GM) innovate in the automobile industry so that it could compete strongly with the Ford Motor Company?

• A) GM organized into separate divisions, each of which appealed to a different market segment.
• B) GM became the first Ford competitor to convert its factories from steam to electricity.
• C) GM standardized its automobile production by only making black-colored cars.
• D) GM introduced a $5.00 wage scale and eight-hour working day for its employees, which made for greater automobile production.

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Definitions:

Dissolution

The process of formally closing or ending a business or legal entity.

Limited Partnership

A business structure where at least one partner has unlimited liability and at least one partner has liability only up to the amount they have invested.

Fiduciary Duty

A legal obligation of one party to act in the best interest of another party, such as the duty a trustee has to beneficiaries.

Liability

Refers to the state of being legally responsible for something, such as a debt or obligation.