Question
Which corporate restructuring strategy refers to the separation of a business unit or division from its parent company, creating an independent entity with its own ownership and management?
Read the following passage and answer the next 4 question (Q27-Q30) Corporate restructuring is an action taken by the corporate entity to modify its capital structure or its operations significantly. Generally, corporate restructuring happens when a corporate entity is experiencing significant problems and is in financial jeopardy. The process of corporate restructuring is considered very important to eliminate all the financial crisis and enhance the company’s performance. The management of the concerned corporate entity facing the financial crunches hires a financial and legal expert for advisory and assistance in the negotiation and the transaction deals. Usually, the concerned entity may look at debt financing, operations reduction, any portion of the company to interested investors. In addition to this, the need for corporate restructuring arises due to the change in the ownership structure of a company. Such change in the ownership structure of the company might be due to the takeover, merger, adverse economic conditions, adverse changes in business such as buyouts, bankruptcy, lack of integration between the divisions, over-employed personnel, etc.
More Banking System in India Questions
- Identify the correct statement with respect to IFSCA (Banking) Regulations 2020?
- The Indian government recently reduced the customs duty on gold. What is the new customs duty rate?
- With reference to Ayushman Bharat Digital Mission, consider the following statements: (2022) I. Private and public hospitals must adopt it. II. As it aims ...
- What is monetary base?
- Which corporate restructuring strategy refers to the separation of a business unit or division from its parent company, creating an independent entity with...
- Which account is opened by the investor while registering with an investment broker?
- In India, NIFTY and SENSEX are calculated on the basis of
- From the below statements identify which one best describes a Convertible Note?
- In the Union Budget 2024-25, what is the projected fiscal deficit for the financial year 2024-25 as a percentage of GDP, reflecting the government’s focus ...
- The country’s retail inflation had crept above the RBI’s tolerance range in January 2022. It remained above the target range for ten months before returnin...
Hey! Ask a query
Please enter email id
The email must be a valid email address.
Please enter Mobile Number
Please enter valid Mobile Number
Please enter your Doubt