Davidson Global proposed splitting itself into four separate firms and its shareholders agreed. This split is referred to as a(n):
A) lockup transaction.
B) divestiture.
C) equity carve-out.
D) spin-off.
E) split-up.

Question

Quizplus · Accepted Answer

A split-up occurs when a company divides itself into two or more independently run companies, and the original company ceases to exist. This is what Davidson Global is doing by splitting into four separate firms.

Davidson Global Proposed Splitting Itself into Four Separate Firms and Its