In this type of divestiture, the divesting company only sells a portion of a business so that funds can be raised and used as future business investments.a.Split-up demergerb.Spin-off demergerc.Partial sell-offd.Equity carve-out
Question
In this type of divestiture, the divesting company only sells a portion of a business so that funds can be raised and used as future business investments.a.Split-up demergerb.Spin-off demergerc.Partial sell-offd.Equity carve-out
Solution
The correct answer is c. Partial sell-off. In a partial sell-off, the parent company sells a portion of a business or a subsidiary. This is often done to raise funds that can be used for future business investments. The parent company may choose to sell a portion of a business that is not performing well or that is not a core part of its operations. The funds raised from the sell-off can then be used to invest in areas of the business that are more profitable or that offer greater growth potential.
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