Both a divestiture and a spin-off generally generate a cash infusion for the parent.

Name: Both a divestiture and a spin-off generally generate a cash infusion for the parent.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

A divestiture often results in a cash infusion for the parent company because it involves selling a part of the company. However, a spin-off, where a unit is separated into a new independent entity and shares are distributed to existing shareholders, does not typically generate cash for the parent company.

Both a Divestiture and a Spin-Off Generally Generate a Cash