BUSINESS ADMINISTRATION
BUSINESS POLICY
Question
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Detailed explanation-1: -In the case of a spin-off, the shares of both the parent company as well as its new subsidiary are distributed among shareholders. However, with split-offs, shareholders are required to relinquish the ownership of their parent company shares in order to be allocated shares in the subsidiary.
Detailed explanation-2: -A second definition of a spin-out is a firm formed when an employee or group of employees leaves an existing entity to form an independent start-up firm. The prior employer can be a firm, a university, or another organization.
Detailed explanation-3: -WHAT IS A TECHNOLOGY SPIN-OFFS? Technology Spin-Offs are companies that base their activity on the application of new scientific or technological discoveries to generate new products, processes or services.