Question: 7. Methods of changing cerperate control When two companies get involved in each other's business in any form, there are strucharal changes that take place
7. Methods of changing cerperate control When two companies get involved in each other's business in any form, there are strucharal changes that take place in both comparies. The following is one of the ways in which companles join fores: Two companies enter into a formal relationship to pursue a mutualy bencfidal goal without combining all their assets. This statemient best describes a Digicen Inc. has been a leading producer of computer hardware, induding hard drives and CD-ROM drives, for a covple bl decades. Mare recently. Digicon entered the software markes, and this divblion has grown to be a major part of olgicon's overall corporate structure. The hardware and software makkets are very different lines of butioess, and the firm has strupoled at times when making strategic dedilons that affect both limes. Digicon is now in the process of carving out ats sotware divibe, which method of danging coeporate coetrol does this example illustrate? Leveraged buyout Corporate allance Devestiture Meroer or acpulation If Digicon proceeds with this carve-cut, how wil share in the new soltware company dadiy be apporeconed? Share in the ner company will be cold in a public alseing Shares in the new conparny will be distrituted to sharbolders in bigicon
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