A company that decides to set up one or more of its business units as a separate company rather than selling it is called?
A)Merger
B)Acquisition
C)Spinoff
D)Retrenchment

Question

Quizplus · Accepted Answer

When a company decides to create a new, independent company from one of its existing business units, it is referred to as a spinoff. This can be done for various reasons, such as focusing on a particular market or product, improving efficiency, or reducing debt. A spinoff allows the new company to operate independently, with its own management team and board of directors, and may result in increased shareholder value. Neither a merger nor an acquisition involves setting up a separate company, and retrenchment typically involves downsizing or restructuring existing operations rather than creating a new entity.

A Company That Decides to Set Up One or More