A spinoff 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 is sold off to form a new company.

Question

Quizplus · Accepted Answer

A spinoff is an action in which a portion of the firm's assets is sold off to form a new company. This new company operates independently of its former parent company, with its own management team and board of directors. Ultimately, the goal of a spinoff is to create two separate companies that can both grow and succeed on their own, without being weighed down by the costs and inefficiencies of a larger organization.

A Spinoff Is an Action in Which