carveout (noun, carve-out, \ kɑːrvaʊt \)
Definition:
- a) is an exception to a regulation, a detachment from a business unit, or an additional agreement that was reached on the basis of the primary agreement between two parties.
- b) (In Collective bargaining) is an attempt made by a subdivision of employees that belong to one union to create a distinct, independent entity that will represent a different union.
- c) (In Finance) is a process of developing a new subsidiary that will operate in an unfamiliar market by using the parent company’s brand and distribution channels as leverage to achieve profitability and recognition.
- d) (In Insurance) is a condition or service that isn’t covered in the main policy but has been purchased separately to improve the basic policy.
In a Sentence:
- Hendrickson should have been fired for his budget manipulations, but since the company values his skills, they used a carveout to issue him a written warning.
- If you want to know my opinion, then I think that we need to try to create a carveout union. It’s quite obvious that the leaders of our union are just puppets in the hands of the management.
- Even though UltraLight has never entered the online market before, they believe the carveout of a new subsidiary will be successful, due to how famous their brand has become with the youth.
Synonyms and related words: collective bargaining, parent firm, shareholder, subsidiary, insurance policy
