What best describes a spinout?Multiple choice question.A division of a firm is consolidated with another division in the same firm to reduce operating costs.A firm enters into a long-term contract with another firm, forming a joint venture.A firm creates a new division to manage the production and sale of a new product line.A division is separated from the rest of the company and is turned into a new, stand-alone corporation.
Question
What best describes a spinout?Multiple choice question.A division of a firm is consolidated with another division in the same firm to reduce operating costs.A firm enters into a long-term contract with another firm, forming a joint venture.A firm creates a new division to manage the production and sale of a new product line.A division is separated from the rest of the company and is turned into a new, stand-alone corporation.
Solution
The best description for a spinout is: "A division is separated from the rest of the company and is turned into a new, stand-alone corporation."
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