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

---

Definitions:

Average Daily Receipts

The average amount of money a business receives on a day-to-day basis over a specified period.

Opportunity Cost

The cost of foregone alternatives, representing the benefits an individual, investor, or business misses out on when choosing one alternative over another.

Interest Rate

is the cost of borrowing money or the return on investment, expressed as a percentage of the principal, over a specified period.