A(n) ________ occurs when a large, typically diversified firm divests itself of a business in which it has historically been operating and the divested business operates as an independent unit.
A) harvest
B) liquidation
C) initial public offering
D) corporate spin-off

Question

Quizplus · Accepted Answer

The scenario described in the question is characteristic of a corporate spin-off, where a large diversified firm sells one of its business units, and that unit then operates as an independent business. Harvest refers to the process of maximizing profits in a mature business, liquidation refers to the process of winding down a business and selling off its assets, and an initial public offering refers to the first time a company's shares are available for public trading.

A(n) ________ Occurs When a Large, Typically Diversified Firm Divests