Asked by Matthew Medina on Apr 25, 2024
Verified
Liquid Asset,Inc.(LAI) is a beverage company.Three years ago,LAI split its wine business into an entirely separate business called WineYard Treasure.Which of the following concepts does this scenario exemplify?
A) Spin-offs
B) Sell-offs
C) Angel capitalism
D) Venture capitalism
Spin-Offs
The creation of an independent company through the sale or distribution of new shares of an existing business or division of a parent company.
Sell-Offs
The rapid selling of assets such as stocks, bonds, or commodities in the financial market, often in response to market or economic indicators.
Angel Capitalism
An investment approach where affluent individuals provide capital for startup companies in exchange for ownership equity or convertible debt.
- Gain insight into the theories and economic impacts of corporate initiatives like mergers, acquisitions, divestitures, and demergers.
Verified Answer
Learning Objectives
- Gain insight into the theories and economic impacts of corporate initiatives like mergers, acquisitions, divestitures, and demergers.
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