GE's Planning Grid Approach to Evaluating Proposed and Existing Plans

question 323

Multiple Choice

GE's Planning Grid approach to evaluating proposed and existing plans and businesses:

• A) considers how profitable opportunities are likely to be.
• B) reflects the corporation's objectives.
• C) helps managers see why some ideas are supported and others are not.
• D) can use quantitative data but it is basically a qualitative approach.
• E) All of these alternatives about GE's Planning Grid are true.

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Definitions:

Market-capitalization Rate

The combined value of all a company's shares currently on the market, found by taking the current price of one stock and multiplying it by the total number of shares available.

Expected Return

The anticipated average return of an investment over a specified period, based on historical data or statistical analysis.

Free Cash Flow

The amount of cash generated by a company after accounting for capital expenditures, indicating the liquidity available for expansion or dividend distribution.

Corporate Tax Rate

The percentage of a corporation's income that is seized by the government as tax.