2. Methods of changing corporate control When two companies get involved in each other's business in any form, structural changes take place in both companies. The following is one way that companies join forces: This restructuring activity may involve the sale of a portion of an acquired company or the sale of an operating division due to a change in corporate strategy. The preceding statement best describes a Maspero Manufacturing Inc. and Tobiashi Trading Company have announced the creation of a new organization, American Business Activities Inc. Both companies have agreed to contribute $5 million, relevant personnel, and some office and warehouse space. This arrangement best describes a: Joint venture Holding company Digicon Inc. has been a leading producer of computer hardware, including hard drives and CD-ROM drives, for a couple of decades. More recently, Digicon entered the software market, and this division has grown to be a major part of Digicon's overall corporate structure. The hardware and software markets are very different lines of business, and the firm has struggled at times when making strategic decisions that affect both lines. Digicon is now in the process of spinning off its software division. Which method of changing corporate control does this example illustrate? A divestiture A consolidation A joint venture A leveraged buyout If Digicon proceeds with the spin-off, how will shares in the new software company likely be apportioned? Shares in the new company will be distributed to shareholders in Digicon. Shares in the new company will be sold in a public offering