Which of the Following Statements Best Supports the View That

question 45

Multiple Choice

Which of the following statements best supports the view that GE's Ecomagination strategy is in line with the shared value creation framework?

• A) The Ecomagination strategy is the brainchild of the founder of the company.
• B) The Ecomagination strategy helps GE spend more on research and development than other similar companies.
• C) The Ecomagination strategy generated $3 billion in revenues for GE during 2012.
• D) The Ecomagination strategy allows GE to produce "green" products while increasing revenue and competitive advantage.

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Definitions:

Debt-To-Equity Ratio

A formula displaying the relative use of debt and equity from shareholders in the financial strategy for a company's assets.

Average Collection Period

calculates the average number of days it takes for a business to receive payments from its customers for invoices issued.

Times Interest Earned

A financial ratio that measures a company's ability to meet its debt obligations by comparing its income before interest and taxes to its interest expenses.

Debt-To-Equity Ratio

A measure of a company's financial leverage calculated by dividing its total liabilities by stockholders' equity.