Which of the Following Is Correct Concerning a Spin-Off

question 114

Multiple Choice

Which of the following is correct concerning a spin-off?

• A) A division of a firm is reconstituted as a new firm.
• B) An unprofitable division is divested.
• C) A division of a firm is bought by its managers.
• D) The spin-off generates no free cash flow.

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Definitions:

Unfreezing

The initial stage in the change process where existing beliefs and behaviors are challenged in preparation for change.

Organization Change

The process by which companies or organizations undergo transformations in structure, strategies, processes, or culture.

Parallel Learning Structures

Systems designed to exist alongside formal organizational structures, facilitating learning and innovation without disrupting everyday operations.

Organizational Hierarchy

A structured arrangement of roles and responsibilities within an organization, often visualized as a chart, that establishes a clear chain of command.