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:

General Journal Entries

The initial records where all financial transactions of a business are noted, using the double-entry method of accounting.

Account Balance

The amount of money in a financial repository at any given moment, which can include debts owed or credits available.

Financial Statement

Reports that provide detailed information about a company's financial performance and position, including the balance sheet, income statement, and cash flow statement.

Temporary/Permanent

Refers to classifications of accounts or differences affecting the timing of tax declarations and financial accounting records.