Since 2001, GE, the World's Largest Conglomerate, Had Been Underperforming

question 91

Essay

Since 2001, GE, the world's largest conglomerate, had been underperforming the S&P 500 stock index. In late 2008,
the firm announced that it was considering spinning off its consumer and industrial unit. What do you believe are
GE's motives for their proposed restructuring? Why do you believe they chose a spin-off rather than an alternative
restructuring strategy?

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Definitions:

Juvenile Delinquents

Youths who engage in behavior that is against the law, often viewed from the perspective of prevention, intervention, and rehabilitation.

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A theoretical game in decision theory where two individuals acting in their own self-interest do not produce the optimal outcome.

Compete

The act or process of striving against others for the purpose of achieving a goal or superiority in a field.

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The initial thoughts or judgments formed about someone or something at the beginning of an encounter, often lasting and difficult to change.