A spin-out occurs when a large company divests itself of one of its smaller divisions and the division becomes an independent company.

Name: A spin-out occurs when a large company divests itself of one of its smaller divisions and the division becomes an independent company.
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Question

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A spin-out is a type of corporate spin-off where a larger company creates a separate entity by divesting a smaller division or business unit. This new company becomes independent and operates as a standalone entity.

A Spin-Out Occurs When a Large Company Divests Itself of One