A Divestiture That Results in an Operating Unit Becoming an Independent

question 61

Multiple Choice

A divestiture that results in an operating unit becoming an independent company is a

• A) sale of a line of business.
• B) sale of a unit to existing management.
• C) spin-off of an operating unit.
• D) leveraged buyout.

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Definitions:

Corporate Level

Relates to the highest strategic tier in an organization, dealing with decisions and strategies that affect the entire company.

Strategic Business Unit Level

A focus within an organization that treats a division or product line as a separate entity with its own strategy and objectives.

Nonprofit Organization

An entity that operates for a collective, public, or social benefit, rather than to make profit for owners or shareholders.

Cooperative

A business or organization owned and operated for the mutual benefit of its members or shareholders.