A __________ is a form of retrenchment in which a corporation decides to set up one or more of its business units as a separate company rather than selling it.
A)Merger
B)Acquisition
C)Spinoff
D)Selloff

Question

Quizplus · Accepted Answer

A spinoff is a type of divestiture in which a company creates a new, independent company by separating a part of its business and distributing shares of the new company to its existing shareholders. This allows the parent company to focus on its core business while giving the spun-off company more autonomy and the ability to pursue its own strategic direction. It is different from a selloff, which involves selling a business unit outright to another company, and from a merger or acquisition, which involves combining two or more companies.

A __________ Is a Form of Retrenchment in Which a Corporation