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===== Definition ===== Business segregation is the practice of separating certain business activities or operations from each other in order to reduce risks, protect assets, or comply with regulatory requirements. This can involve creating separate legal entities, business units, or operational structures to ensure that the activities are distinct and independent from each other. There are several reasons why businesses may choose to segregate their operations, including: 1. Risk management: By separating high-risk activities from low-risk activities, businesses can limit the potential impact of a failure in one area on the rest of the organization. 2. Asset protection: Segregating business operations can help protect valuable assets from liabilities associated with other parts of the business. 3. Regulatory compliance: Some industries have strict regulations that require certain activities to be segregated to ensure transparency, accountability, and protection of stakeholders. Overall, business segregation can help businesses operate more effectively and efficiently by ensuring that each part of the organization is managed in a way that minimizes risk and maximizes potential for growth.
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