A corporate _____ may call for spinning off some departments into subsidiaries as a means of creating a more effective management model as well as taking advantage of tax breaks that would allow the corporation to divert more revenue to the production process.

Question

Quizplus · Accepted Answer

The term restructuring refers to the process of reorganizing a company's organizational structure, operations, or finances for the purpose of improving efficiency and profitability. Spinning off departments into subsidiaries is one such form of restructuring that can help a corporation create a more effective management model and take advantage of tax benefits. Therefore, option D is the best choice. Formalization refers to the degree to which job responsibilities and procedures are clearly defined within an organization. Centralization is the extent to which decision-making authority is concentrated in a few individuals or groups within an organization. Layoff refers to the termination of employees due to economic or other reasons. Amalgamation refers to the process of combining two or more companies into a single entity. None of these terms accurately describe the situation mentioned in the question.

A Corporate _____ May Call for Spinning Off Some Departments