GE (Discussed in the Chapter 6 Opening Case)is an Example

question 33

True/False

GE (discussed in the Chapter 6 Opening Case)is an example of a firm that has used internal capital market allocation as a means of creating value even though it competes using a related linked rather than an unrelated diversification strategy.

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Definitions:

Franchise

A licensing agreement where a franchisor allows a franchisee to use its brand, products, and operating methods.

Franchising Agreement

A legal contract where a franchisor grants a franchisee the right to operate a business using the franchisor's trademark, product, and business model in exchange for fees.

Franchisor

A business entity that grants the rights to an individual or group to market its products or services in a specific territory under the business's brand and operating methods.

Franchisee

An individual or company that holds the rights to operate a business under the franchise's name and system.