The Chief Executive Officer (CEO) of a company announced that a demerger operation will be completed in the next nine months. Which of the following BEST describes the organizational change?

The correct answer is C. Business split. A demerger is when a single company separates into two or more independent entities, making it a Business split (C). This is also called a spin-off or divestiture. A Business relocation (A) involves moving operations to a different physical location. A Business reorganization…

Project management concepts

Question

The Chief Executive Officer (CEO) of a company announced that a demerger operation will be completed in the next nine months. Which of the following BEST describes the organizational change?

Options

ABusiness relocation
BBusiness reorganization
CBusiness split
DBusiness acquisition

How the community answered

(27 responses)

A
4% (1)
C
93% (25)
D
4% (1)

Explanation

A demerger is when a single company separates into two or more independent entities, making it a Business split (C). This is also called a spin-off or divestiture. A Business relocation (A) involves moving operations to a different physical location. A Business reorganization (B) refers to restructuring internal departments or processes, not splitting into separate companies. A Business acquisition (D) is when one company purchases another - the opposite of a demerger.

Topics

#business split#demerger#organizational change#business change drivers

Community Discussion

No community discussion yet for this question.

Full PK0-004 Practice