Has General Electric conquered the business cycle

A detailed Summary of Has General Electric conquered the business cycle

Has General Electric conquered the business cycle? According to the companies past three financial statements it appeared as if they have indeed done so. Looking at GE's 1996 Annual Report, Letter To Share Holders, the first phrase of the 14 page document was "In 1996, your Company had its best year ever." Companies such as GE spend millions if not billions of dollars per year to ensure they can include this nine-worded phrase in their Annual Report. Those few words affect the behavior of investors all over the world.

To understand why a corporation would "manage earnings" one must first understand the reason a corporation exists. The Corporation is an abstract entity which sole concern is to please its stockholders in every degree according to Prof. Saldana of Phl 205 (Business and Professional Ethics). Profit is the generating force behind all Corp

Investors and financial analysts are truly aware of the companies whom "manage earnings." A large degree of AAA stocks are tied into these financial monsters, such as IBM, PepsiCo, Disney, Merck and Co., as well as General Electric. Investors look for these companies not for growth but for long term securities these companies are as stable as the U.S. Government yet yield better than T-Bills even after taxes. These Corporations are promoting the way of J. D. Rockefeller yet still maintains the ability to continue without threat of breaking antitrust laws. Again, investors view these Corporations with envy ensuring tomorrows business today.

A CEO, in the case of GE, John F. Welch Jr. is faced with risk daily. It is his initial decision to change the direction of the Corporation whether for better or worst. The daily stock price and its fluctuations may

Some common words found in the essay are:
Fresco Gains, Welch Jr, Electric Investors, Annual Report, Ethics Profit, Corporations Understanding, , Companies GE, Share Holders, Saldana Phl, annual report, business cycle, manage earnings,

Approximate Word count = 581
Approximate Pages = 2 (250 words per page double spaced)

Category: Miscellaneous

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