In a Divisive "Type D" Reorganization, the Distributing Corporation Obtains

question 61

True/False

In a divisive "Type D" reorganization, the distributing corporation obtains control of the new target by exchanging some of its assets for at least 80% of the new target's outstanding stock.

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Definitions:

Coordination

The organization of the different elements of a complex body or activity so as to enable them to work together effectively.

Material Resources

Tangible assets or physical goods that are needed for the production of services or goods, including machinery, buildings, and raw materials.

Human Resources

refers to the department within an organization that deals with the management, support, training, and development of its employees.

Organization

A structured group of individuals working together to achieve common goals or objectives, often characterized by a set hierarchy or operating system.