Which of the following is not a divisive reorganization?
A)Spin out
B)Split up
C)Spin off
D)Split off

Question

Quizplus · Accepted Answer

A spin out is not considered a divisive reorganization. In a spin out, a company creates a new independent company by selling or distributing new shares of its existing business. This can be a way to unlock shareholder value but does not involve dividing the existing company into two or more independent companies, which is characteristic of divisive reorganizations like split-ups, spin-offs, and split-offs.

Which of the Following Is Not a Divisive Reorganization