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
- What does "ESG" stand for in the context of BRSR and SEBI's requirements?
- Which of the following is prepared for each job regardless of the time taken for the completion of the job?
- Prashant is the finance manager in his organisation. He job profile entails various functions, one of them being that of control. Which one of the followin...
- If a stock's expected return is 18%, the risk-free rate is 6%, and the market return is 12%, what is the stock's beta according to the CAPM?
- Consider the following about the Public Account: I. Provident Funds II. Small Savings collections III. Receipts of Government subsidy Which of the above is...
- Which of the following statements accurately describes India's payment systems? 1) The Reserve Bank of India (RBI) is the primary regulator and supervisor...
- Which of the following is the process of concealing the origin of money, obtained from illicit activities such as drug trafficking, corruption, embezzlemen...
- What is moratorium period for small and startup firms under Insolvency and Bankruptcy Code 2016?
- What would be the profit as per cash basis of accounting based on the following information: Revenues on account = Rs.50000 Cash Sales = Rs.70000 Salari...
- What will be the Return on Equity of Rahul’s company?
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
Think You're Ready for RBI Grade B?
RBI Grade B 2026 Phase 1 Memory Based Paper
- 200 Questions with Detailed Solutions
- Section-wise Coverage (GA, English, Quant & Reasoning)