Recently General Motors Was on the Brink of Bankruptcy

question 34

Multiple Choice

Recently General Motors was on the brink of bankruptcy. One of the solutions was to deal with their problem of multibranding. What did GM do to reduce costs and increase profitability?

• A)They cut many modest or failing brands to focus on their stronger brands.
• B)They offered employee discounts to everyone.
• C)They lobbied along with Chrysler for huge government bailout payments.
• D)They sold stock to generate revenue.
• E)They sold more cars and trucks.

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Definitions:

Qualified Plan

A retirement plan that meets requirements established by the Internal Revenue Code and ERISA, providing tax advantages and benefits.

Highly Compensated Employees

Individuals who receive a high level of compensation from their employers, often defined by specific legal or regulatory standards.

Cafeteria-Style Plan

A type of employee benefit plan that allows workers to choose from a variety of pre-tax benefits, akin to selecting food in a cafeteria.

Degrees Of Freedom

The number of independent values or quantities that can vary in the analysis without violating any given constraints.