GE Is Commissioned to Build a New Power Station for Which

question 30

Multiple Choice

GE is commissioned to build a new power station for which the overall construction effort is contracted through GE Power Systems.But in addition to generators, GE may need other items such as switching technology or light fixtures that are manufactured by its subsidiary.GE Power Systems would purchase items it doesn't manufacture internally from GE Automation, another subsidiary of GE and then sell them on to the customer as part of the construction project.The above serves as an example of:

• A)debt financing.
• B)capital budgeting.
• C)equity financing.
• D)transfer pricing.
• E)multilateral netting.