Asked by
Nicole Mendise
on Dec 01, 2024
Verified
A spinoff is a last resort effort to divest a badly failing business.
Spinoff
A spinoff occurs when a company creates an independent entity by detaching a portion of its business, assets, or division, distributing shares of the new entity to its current shareholders.
Divest
The act of selling off assets or divisions of a company for financial or strategic reasons.
Failing Business
A business that is unable to continue operating due to financial difficulties, leading to bankruptcy or liquidation.
- Understand the strategies and outcomes of corporate restructuring methods, including spinoffs and divestitures.
Verified Answer
LM
Learning Objectives
- Understand the strategies and outcomes of corporate restructuring methods, including spinoffs and divestitures.