Question

Arocare International, a general hospital, converts its cancer unit into a new hospital called Miracle. Arocare then issues stock in the new hospital and sells the stock to outside investors. This helps Arocare raise additional funds. This scenario exemplifies: __________:A. a lateral expansionB. a deployment planC. asset strippingD. a carve-out

Answer 1

Answer:

D. a carve-out

Explanation:

According to my research on different business strategies, I can say that based on the information provided within the question this scenario exemplifies a carve-out. This term refers to when a company diversifies a business unit in order for the parent company to sell a minority interest of that specific child company to outside investors in order to raise funds. Which like mentioned in the question is exactly what Arocare International is doing with it's child company - Miracle hospital unit.

I hope this answered your question. If you have any more questions feel free to ask away at Brainly.