Why Might a Firm Choose a Spinoff Instead of Selling

question 15

Essay

Why might a firm choose a spinoff instead of selling a division and distributing the cash?

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Definitions:

Temporal Comparison

The process of comparing one's current performance or state to one's performance or state at a previous time.

Self-serving Bias

The common habit of a person taking credit for positive events or outcomes, but blaming outside factors for negative events.

Temperament Aspects

Fundamental components of an individual's personality, often innate, that dictate how they react to their environment and situations.

Long-term Implications

The lasting effects or consequences of an action or condition over an extended period.