As Part of Its Restructuring Plan, a Holding Company Plans

question 88

Multiple Choice

As part of its restructuring plan, a holding company plans to undertake an IPO for 35 percent of the shares it owns in a subsidiary. The sale of these shares would be called a

• A) Divestiture
• B) Split-off
• C) Split-up
• D) Equity carveout
• E) Breakup

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Definitions:

Capabilities

The combination of skills, resources, and abilities that an organization possesses to perform its functions effectively.

External Environmental Supply

Pertains to the external sourcing of resources or inputs that a company needs from its external environment to operate effectively.

Human Capital

The collective skills, knowledge, or other intangible assets of individuals that can be used to create economic value for the individuals, their employers, or the community.

Management Inventories

Tools or databases that track managerial skills and capabilities within an organization to aid in strategic planning and deployment.