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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?


Definitions:

DOT 3

A type of brake fluid that exceeds certain specifications for boiling point and composition, suitable for many vehicles.

DOT 4

A type of brake fluid designated by the Department of Transportation, having specific boiling point and composition standards for vehicle braking systems.

Pushrod

A component in certain engines that transfers motion from the camshaft to open and close the valves.

Brake Pedal

The pedal in a vehicle that operates the brake system to slow down or stop the vehicle.

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