Question

Arocare International, a general hospital, converts its cancer unit into a new hospital called Miracle. Arocare then issues stock in the new hospital and sells the stock to outside investors. This helps Arocare raise additional funds. This scenario exemplifies:

Answer 1

The correct answer is a carve-out

A spin-off is the operation by which the company transfers portions of its equity to one or more companies, constituted for this purpose or already existing, extinguishing the spun-off company, if there is a version of all its equity, or dividing its capital, if partial version