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:

\(8^x\cdot 8^{x-1}\)

An expression that can be simplified to \(8^{2x-1}\) using the properties of exponents.

\(10,000(1.07)^{4t}\)

An exponential growth equation, where \(10,000\) is the initial quantity and \(1.07\) is the growth factor applied every period \(t\), scaled by a factor of 4.

\(10,000(1.09)^{3t}\)

An exponential function, often used in finance to calculate compounded interest or investment growth over time.

Three Decimal Places

Referring to a numerical precision that includes three digits to the right of the decimal point.