As noted in the Chapter 6 Opening Case,GE is now a major player in the "clean energy" industry such as wind turbines and solar power. A major reason GE moved in this direction was
A)to narrow the focus of its portfolio around energy-related industries.
B)to overcome and correct its record in environmental issues.
C)to further diversify its portfolio away from services.
D)the clean energy industry was guaranteed to be profitable for the next several years.

Question

Quizplus · Accepted Answer

The Chapter 6 Opening Case notes that GE's move into the clean energy industry was partly a response to its poor record on environmental issues. This suggests that B is the most likely reason for the move. While factors such as portfolio focus and diversification may have played a role, they are not explicitly mentioned in the case. The option of guaranteed profitability is also not mentioned, and is unlikely given the uncertainties of the energy market.

As Noted in the Chapter 6 Opening Case,GE Is Now