A Form of Divestiture in Which an Operating Unit Becomes

question 60

Multiple Choice

A form of divestiture in which an operating unit becomes an independent company by issuing shares in it on a pro rata basis to the parent company's shareholders is called ________.

• A) leveraged buyout
• B) employee stock option
• C) spin-off
• D) strategic takeover

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Definitions:

Position Power

The authority or influence one holds as a result of their rank or role within an organization.

Personal Power

An individual's capacity to influence others based on personal attributes or skills, rather than formal authority.

Detrimental

Causing harm or damage.

Reward Power

The ability to influence the behavior of others by controlling access to desired outcomes or benefits, such as promotions, raises, or recognition.