The GE Business Screen Has Been Criticized Because

question 98

Multiple Choice

The GE Business Screen has been criticized because

• A)it is based on the product life cycle.
• B)the categories are too few.
• C)it can get quite complicated and cumbersome.
• D)it is a primitive version of the BCG Growth Share Matrix.
• E)it is only appropriate for new products or SBUs in developing industries.

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Definitions:

Carrying Value

The book value of an asset or liability on a company's balance sheet, representing its value according to accounting standards.

Unrealized Gain

A profit that results from an investment that has increased in value but has not yet been sold for cash.

Acquisition Differential

The gap between what a company is bought for and the true worth of its recognizable assets and debts.

Goodwill Impairment

Goodwill impairment occurs when the market value of a company's goodwill asset falls below its book value, indicating that the asset is overvalued on the balance sheet.