Which of the following best describes a spin-off?
A) It involves creating a new company whose stock is owned by investors.
B) It refers to selling off part of a firm's operations.
C) It requires moving into new value chains.
D) It involves simply shutting down portions of a firm's operations.
E) It involves a firm acquiring a rival's business.

Question

Quizplus · Accepted Answer

A spin-off involves creating a new company by separating part of a parent company, and the new company's stock is distributed to the parent company's shareholders, making them the owners of the new entity.

Which of the Following Best Describes a Spin-Off