The GE "Stop-Light" Evaluation Method Is a Very Objective Approach

question 319

True/False

The GE "stop-light" evaluation method is a very objective approach because GE feels there are too many possible errors if it tries to use subjective criteria for judging "attractiveness" or "strength."

---

Definitions:

Shareholders' Equity

Shareholders' equity represents the residual interest in the assets of a corporation after deducting its liabilities, indicating the ownership interest of the shareholders.

2-For-1 Stock Split

A corporate action where a company doubles its number of outstanding shares, halving the stock price, effectively giving shareholders two shares for every one they owned.

Cancellation

The act of nullifying or terminating a previously established agreement or contract.

Legal

Pertaining to laws or the practice of law; conforming to the law or based upon the law.