Asked by Jordan Storberg on May 16, 2024
Verified
If an automobile company purchases an accessory manufacturing division from another automobile company,then the latter company's transaction with the former is an example of a
A) consignment
B) wharfage
C) sell-off
D) spin-off
Sell-Off
Transaction in which assets are sold by one firm to another.
Spin-Off
A type of corporate restructuring where a division or subsidiary becomes an independent company.
Consignment
An arrangement in which goods are left in the possession of another party to sell, with payment to the original owner occurring only after the sale.
- Acquire knowledge on the fundamentals and financial outcomes of corporate activities encompassing mergers, acquisitions, divestitures, and spin-offs.
Verified Answer
YR
Yulissa RodriguezMay 16, 2024
Final Answer :
C
Explanation :
This transaction is an example of a sell-off, where one company sells part of its operations or assets to another company. In this case, the accessory manufacturing division is being sold to another automobile company.
Learning Objectives
- Acquire knowledge on the fundamentals and financial outcomes of corporate activities encompassing mergers, acquisitions, divestitures, and spin-offs.