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Accounting Analysis

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General Electrics: Works with Cost Information

Jennifer Ortega
January 24, 2010
Professor Barbara Borg

General Electrics: Works with Cost Information

There are many publicly traded companies that you work with cost information. I believe one of them is the General Electrics or GE. GE was named by the Fortune magazine in 2001 as America’s “most admired company” and the Financial Times identified GE as the “world’s most respected company”. (Grant, 2004) General Electric was ranked as the fourth most recognized brand in the world last 2006, estimating the company’s worth to almost $49 billion (The 100 Top Brands) The General Electrics is currently a giant producer of highly modernized equipments including aircraft engines, transportation equipments, kitchen and laundry appliances, lighting, electric distribution and control equipment, generators and turbines, and medical imaging equipments. (General Electric Company) The company currently has a long rooster of the list of acquisitions and divestitures. Despite the success, the company also faces some risk and weakness. The famous Sir Thomas Edison opened a new laboratory in Menlo Park, New Jersey in 1876 where an incandescent electric lamp was invented. After such invention, Edison organized his various businesses into the Edison General Electric Company in 1890. Few years later in 1879, the rival Thomson-Houston Electric Company was formed by Elihu Thomson and Edwin J. Houston merging with various companies. There was no problem in the expansion of the businesses but it later became increasingly difficult for either company to produce complete electrical installations relying solely on their own technology. To overcome such challenge, the two major companies combined in 1872, in a merger arranged by financier J. P. Morgan, which formed the General Electric Company,…...

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