Arocare International, a general hospital, converts its cancer unit into a new hospital called Miracle. Arocare then issues stock in the new hospital and sells the stock to outside investors. This helps Arocare raise additional funds. This scenario exemplifies:

Question

Quizplus · Accepted Answer

A carve-out occurs when a company creates a new independent company by selling or issuing shares of the new company to outside investors, which is exactly what Arocare did with its cancer unit.

Arocare International, a General Hospital, Converts Its Cancer Unit into a New