In 2009 General Motors Had Numerous Internal Weaknesses

question 32

Multiple Choice

In 2009 General Motors had numerous internal weaknesses. However, there were still many external opportunities available for the company to pursue. Which of the following strategy direction is appropriate for this scenario?

• A) ​Turnaround
• B) ​Defensive
• C) ​Diversification
• D) ​Passive
• E) ​Aggressive

Understand federal unemployment tax responsibilities.

Learn the shared responsibility of Medicare taxes between employer and employee.

Understand and identify contingent liabilities.

Recognize and describe the characteristics of defined contribution and benefit plans.

---

Definitions:

No-Par Value Stock

Stock issued without a specified face value but which may have a stated value assigned by the company.

Stated Value

The value assigned to no-par-value stock by the board of directors of a company, which can then be used as the basis for accounting and legal purposes.

Dividends in Arrears

Unpaid dividends on cumulative preferred stock, which must be paid out before any dividends can be issued on common shares.

Cumulative Preferred Stockholders

Investors holding a type of preferred stock that accumulates dividends in arrears should the dividends not be declared in any given period.