The nature of work and the work schedule in the animation department of a movie production company differ from that of other departments of the company. Hence, the company decides to branch this department out into a new company by selling the stock to outside investors. In this scenario, the company is using a strategy called a(n):
A)conglomerate merger.
B)acquisition.
C)carve-out.
D)telecommuting.

Question

Quizplus · Accepted Answer

A carve-out strategy is when a company separates a division or department into a new, independent company. This allows the new company to have its own management and focus on its specific needs and characteristics. In this scenario, the animation department has a unique nature and work schedule that differs from the other departments, so separating it out into a new company would make sense. A conglomerate merger involves merging two or more companies that have unrelated business activities, while an acquisition is when one company takes over another company. Telecommuting is not relevant to this scenario.

The Nature of Work and the Work Schedule in the Animation