A(n) _____, a type of divestiture, occurs when a company issues stock in one of its own divisions or operating units and sets it up as a separate company-complete with its own board of directors and corporate officers.
A) spin-off
B) stub
C) away swing
D) bowl-out

Question

Quizplus · Accepted Answer

A spin-off is a type of divestiture where a company creates an independent company by issuing stock in one of its divisions or operating units, establishing it with its own board and officers.

A(n) _____, a Type of Divestiture, Occurs When a Company