A _____ is a type of divestiture in which a firm converts a particular unit or division into a separate company and issues stock in the newly created corporation and also sells the stock to outside investors, thus raising additional financial capital.
A) spinoff
B) carveout
C) splitoff
D) buyout

Question

A _____ is a type of divestiture in which a firm converts a particular unit or division into a separate company and issues stock in the newly created corporation and also sells the stock to outside investors, thus raising additional financial capital.
A) spin­off
B) carve­out
C) split­off
D) buyout

Quizplus · Accepted Answer

A carve-out is a type of divestiture in which a firm spins off a particular unit or division into a separate company and then issues stock in the newly created corporation and sells it to outside investors, thus raising additional financial capital.

A _____ Is a Type of Divestiture in Which a Firm