Which of the following occurs when an organization sells part of a business or operation to another corporation?
A) Merger
B) Acquisition
C) Divestiture
D) Buy out
E) Spin off

Question

Quizplus · Accepted Answer

When an organization sells part of its business or operation to another corporation, it is called a divestiture. Choice A (merger) refers to two companies coming together, choice B (acquisition) refers to one company buying another company as a whole, choice D (buy out) refers to one company buying out the ownership stake of another company or individual, and choice E (spin off) refers to creating a new independent company out of a division or subsidiary of an existing company.

Which of the Following Occurs When an Organization Sells Part