Which of the Following Sources of Conglomerate Value Creation Explains

question 6

Multiple Choice

Which of the following sources of conglomerate value creation explains GE CEO Jeff Immelt's assertions that both GE's size allows it to "drive common initiatives across the company that accelerate growth,satisfy customers and expand margins" and GE's is able "develop people to grow a common culture that is adaptive,ethical and drives execution"?

• A)Use of internal capital markets
• B)Economies of scale and scope
• C)Economizing on transaction costs
• D)Dominant general management logic
• E)Identifying undervalued firms

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Definitions:

Marginal Tax Rates

The tax rate applicable to the last dollar of income earned, reflecting the percentage of tax applied to your income for each tax bracket in which you qualify.

Straight-Line Depreciation

A method of allocating the cost of a tangible asset evenly over its useful life.

Net Advantage to Leasing

This refers to the total financial benefits that a company might gain from leasing assets rather than purchasing them outright, taking into account tax advantages, cash flow, and risk factors.

CCA Rate

The Capital Cost Allowance (CCA) rate refers to the percentage rate at which a business can claim depreciation on certain property types for tax purposes in Canada.