A ________ exists 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 entity.
A) corporate spin-off
B) franchise
C) division
D) subsidiary

Question

Quizplus · Accepted Answer

A corporate spin-off is the process of a large, diversified firm divesting itself of a business unit creating a new, independent company that can operate on its own. This allows the parent company to focus on its core competencies, and the divested business can operate as a separate entity, possibly with its own management team, board of directors, and shareholders. The other options (B, C, and D) do not match the described scenario.

A ________ Exists When a Large,typically Diversified Firm Divests Itself