A spin-off is an action in which:
A)The management bids for and acquires the firm
B)One firm issues stock to acquire another firm
C)Successful product lines are sold to competitors
D)A portion of the firm's assets are sold off to form a new company

Question

Quizplus · Accepted Answer

A spin-off is when a portion of a company's assets are sold or separated off to form a new company. This new company is then owned by the shareholders of the original company. The spin-off allows the original company to focus on its core business, while the new company can focus on the spun-off assets and potentially grow in a different direction.

A Spin-Off Is an Action in Which