A ________________is the reverse of a merger, that is, a company sells assets such as subsidiaries, product lines, or production facilities.
A) sell-off
B) spin-off
C) tender offer
D) divestiture

Question

Quizplus · Accepted Answer

A divestiture is the process of selling off assets or business units to raise funds or streamline operations. This is often done to eliminate unprofitable or non-core parts of a business. A sell-off is a similar term, but is more general and can refer to any type of assets being sold, while a spin-off is the creation of a separate, independent company out of a larger parent company. A tender offer is a specific type of transaction in which one company offers to buy shares of another company's stock from its shareholders at a premium price. Therefore, the best choice is D, divestiture.

A ________________Is the Reverse of a Merger, That Is, a Company