题目内容

The board of directors of a large conglomerate has decided that the investment opportunities for the firm are limited and that greater value could be created for the shareholders if the firm were divided into four independent businesses. Following approval by shareholders, the firm executed this strategy which is best described as a

A. Split-up
B. Split-off
C. Spin-off
D. Equity carveout
E. Reverse merger

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A firm decides to distribute all of the shares it holds in a subsidiary to its shareholders. The distribution would be called a

A. Divestiture
B. Split-up
C. Spin-off
D. Split-up
Equity carveout

As part of its restructuring plan, a holding company plans to undertake an IPO for 35 percent of the shares it owns in a subsidiary. The sale of these shares would be called a

A. Divestiture
B. Split-off
C. Split-up
D. Equity carveout
E. Breakup

A diversified automotive parts supplier has decided to sell its valve manufacturing business. This sale is referred to as a

A. Merger
B. Divestiture
C. Spin-off
D. Equity carveout
E. Liquidation

Which of the following is not true of a split-off?

A split-off is a variation of a spin-off
B. Parent company shareholders receive shares in a subsidiary in return for surrendering their parent company shares
C. Split-offs are best suited for disposing of a less than 100 percent investment stake in a subsidiary,
D. A split-off reduces the parent firm's earnings per share.
E. The split-off reduces the pressure on the spun-off firm’s share price

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