Should a Company Choose to Divest a Business Unit It

question 17

Multiple Choice

Should a company choose to divest a business unit it can create a new company from the business unit with its own shares of stock and its own board of directors. This is called a(n) :

• A) Satellite company
• B) Asset sale
• C) Spin-off
• D) Re-liquidation

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Definitions:

Mixing Process

A manufacturing operation where different materials or components are combined to produce a new product.

Heating Process

A method or procedure applied to increase the temperature of a substance or space for a specific purpose.

Bottling Process

A sequence of operations involved in filling bottles with products, such as beverages, sealing them, and preparing them for sale and distribution.

Cost Reduction Objective

A strategic goal aimed at decreasing expenses to improve profitability without compromising the quality of products or services.