A Business That Is Created by Separating Parts of an Operating

question 88

Multiple Choice

A business that is created by separating parts of an operating business into a separate entity is called a:

• A) synergy.
• B) franchise.
• C) spin-off.
• D) turnkey project.

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Definitions:

Call Option

A financial contract granting the buyer the right, but not the obligation, to purchase a stock, bond, commodity, or other assets at a specified price within a specific time period.

GM Stock

Equity shares of General Motors Company, traded on stock exchanges.

December Futures Contracts

Futures contracts that are set to expire in the month of December, often traded for commodities or financial instruments.

Cotton

A natural fiber and a commodity traded globally, used primarily in the textile industry.