Which of the Following Occurs When an Organization Sells Part

question 1

Multiple Choice

Which of the following occurs when an organization sells part of a business or operation to another corporation?

• A) Merger
• B) Acquisition
• C) Divestiture
• D) Buy out
• E) Spin off

---

Definitions:

Total Assets

The sum of all assets owned by an entity, including both current and non-current assets, as shown on the balance sheet.

Money Market Securities

Short-term debt instruments, typically issued by governments, financial institutions, and corporations, characterized by high liquidity and low risk.

Principal Investment

An original amount of money invested, excluding any earnings or losses.

Real Assets

Real assets are physical or tangible assets such as land, buildings, and commodities that have intrinsic value.