_____ Is a Type of Divestiture in Which a Firm

question 135

Multiple Choice

_____ is a type of divestiture in which a firm converts a particular unit or division into a separate company and issues stock in the newly created corporation to outside investors.

• A) A deployment plan
• B) Licensing
• C) A carve-out
• D) Asset stripping

---

Definitions:

Employer Negligence

A legal concept where an employer is held liable for failing to provide a safe working environment, resulting in harm to an employee.

Workers' Compensation

Insurance that delivers medical assistance and compensation for wages to employees injured during their employment.

Percentage

A proportion or share in relation to a whole, expressed as a fraction of 100.

Increased Risk Test

The increased risk test is a legal principle used to determine liability in negligence cases, examining whether the defendant's actions significantly elevated the risk of harm to the plaintiff.