The Chief Executive Officer (CEO) has changed the direction of a business and no longer needs one of the divisions. A deal is reached to sell the division to a company in another state. Which of the following BEST describes this type of organizational change?

Question

Quizplus · Accepted Answer

The sale of a division to another company is best described as a demerger, which involves the separation of a part of the organization to operate independently or under different ownership.

The Chief Executive Officer (CEO) Has Changed the Direction of a Business