carveout: meaning, definition, pronunciation and examples
C1Formal/Professional
Quick answer
What does “carveout” mean?
A specific provision, exception, or arrangement created by excluding or separating something from a larger entity, rule, or agreement.
Audio
Pronunciation
Definition
Meaning and Definition
A specific provision, exception, or arrangement created by excluding or separating something from a larger entity, rule, or agreement.
A distinct part, division, or subsidiary created from within a larger company or legal structure; an exclusion clause in a contract; a designated segment of a market or product offering.
Dialectal Variation
British vs American Usage
Differences
Both varieties use the term primarily in business, legal, and financial contexts. British English may show a slightly higher preference for the hyphenated form 'carve-out', but this is not a strict rule. The spelling 'carve out' as a phrasal verb is standard in both.
Connotations
Similar connotations in both varieties: strategic planning, legal/business structuring, and deliberate exception-making.
Frequency
Moderately frequent in specialized business/financial journalism and legal documents in both regions; rare in everyday casual speech.
Grammar
How to Use “carveout” in a Sentence
carve out [NOUN] from [NOUN]create/negotiate a carveout for [NOUN]a carveout in [AGREEMENT/LAW]a carveout from [RULE/CATEGORY]Vocabulary
Collocations
Examples
Examples of “carveout” in a Sentence
verb
British English
- The agreement will carve out special provisions for the crown dependencies.
- They plan to carve out a separate division for renewable energy projects.
American English
- The bill carves out an exception for small businesses.
- The CEO carved out a successful career in several tech startups.
adjective
British English
- The carve-out clause proved to be crucial during the arbitration.
- They reviewed the carve-out provisions in the draft treaty.
American English
- The carveout provision was a deal-breaker for the investors.
- We need to discuss the carveout terms before signing.
Usage
Meaning in Context
Business
Refers to a subsidiary or division created through a corporate spin-off, or a specific exception in a merger deal. E.g., 'The merger includes a carveout for the European division.'
Academic
Used in law, economics, and policy papers to discuss exceptions in regulations or treaties. E.g., 'The study analyses the environmental carveouts in the trade agreement.'
Everyday
Rarely used. Might be understood in the context of making an exception to a rule within a group or family plan.
Technical
Precise term in legal drafting and corporate finance for a defined exclusion or a separated business entity.
Watch out
Common Mistakes When Using “carveout”
- Using 'carveout' as a verb (the verb is 'carve out', two words).
- Confusing 'carveout' (noun) with 'opt-out' (which is about choice).
- Misspelling as 'carve-out' or 'carve out' when the single-word noun form is intended.
FAQ
Frequently Asked Questions
As a noun, 'carveout' and 'carve-out' are both accepted, with dictionaries showing variation. The hyphenated form is common. As a verb, it is always the phrasal verb 'carve out' (two words).
They are closely related. A 'carveout' often refers to the act or provision of separating a business unit. A 'spin-off' is a specific type of carveout where the separated unit becomes an independent, publicly traded company. All spin-offs involve a carveout, but not all carveouts result in a full spin-off.
It is highly specialized. In everyday situations, words like 'exception', 'special rule', or 'separate part' are far more natural and understandable.
It is generally neutral, describing a structural or legal fact. Connotation depends on context: a 'carveout' can be seen positively (as protection) or negatively (as a loophole).
A specific provision, exception, or arrangement created by excluding or separating something from a larger entity, rule, or agreement.
Carveout is usually formal/professional in register.
Carveout: in British English it is pronounced /ˈkɑːvˌaʊt/, and in American English it is pronounced /ˈkɑːrvˌaʊt/. Tap the audio buttons above to hear it.
Phrases
Idioms & Phrases
- “carve out a niche”
- “carve out a career”
Learning
Memory Aids
Mnemonic
Imagine carving a piece of turkey from the whole bird. A 'carveout' is like that specific piece you've cut out for yourself from the larger whole (a deal, a law, a company).
Conceptual Metaphor
A LARGER ENTITY IS A SOLID MASS (from which a specific piece can be carved out).
Practice
Quiz
In which context is the term 'carveout' LEAST likely to be used appropriately?