One Reason for a Company to Spin-Off a Division Is

question 6

Multiple Choice

One reason for a company to spin-off a division is to ____.

• A) consolidate expenses
• B) remove an underperforming unit
• C) create a better distribution unit
• D) achieve synergy

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Definitions:

Seasonal Fluctuations

Variations in sales, inventory levels, or business activity that regularly occur at certain times of the year due to seasons.

Corporate Bonds

Debt securities issued by corporations to fund capital improvements, expansions, or other business needs.

Idle Cash

Cash that is not currently invested or used in transactions, often earning minimal or no interest.

Cash Management

Cash management is the process of collecting, managing, and investing a company's cash flow in order to meet its operational expenses and maintain liquidity.