Why Gordon Haskett Analyst Inch Sounded a Warning About GE's Finance Arm

Why Gordon Haskett Analyst Inch Sounded a Warning About GE's Finance Arm

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Business

University

Hard

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The transcript discusses General Electric's (GE) financial struggles, focusing on its significant debt, asset sales, and leadership changes. The company is selling assets like Baker Hughes to raise funds, but faces challenges due to off-balance-sheet debt and liabilities. The aviation business, once a strong performer, is now at risk due to economic conditions. Leadership under Larry Korb is scrutinized, with concerns about his ability to manage GE's complex portfolio. Potential outcomes include insolvency, though asset sales may buy time. GE Capital's performance is weak, with significant losses, highlighting the need for liquidity solutions.

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7 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What was the primary reason for GE's asset sales strategy?

To expand their business operations

To reduce their workforce

To raise money due to financial struggles

To invest in new technologies

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Why can't GE's capital arm be sold off?

It is not a part of GE

It is a new venture

It is backed by GE industrial's debt instruments

It is too profitable

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is Larry Korb's main area of expertise?

Marketing and Sales

Business reengineering at a factory floor level

Financial auditing

Human resources management

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the worst-case scenario for GE according to the discussion?

A significant drop in stock price

A hostile takeover

Insolvency

A major lawsuit

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the main issue with GE's helicopter leasing business?

It is highly profitable

It has a low return on investment

It is not part of GE Capital

It is expanding too quickly

6.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the expected profit from GE Capital Aviation Services this year?

$3 billion

$2 billion

$1.2 billion

$500 million

7.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the main reason GE is looking to raise money?

To expand their workforce

To plug potential liquidity gaps

To invest in new technologies

To acquire new companies