Which of the Following Is the Best Definition of a Spin-Off

question 307

Multiple Choice

Which of the following is the best definition of a spin-off?

• A) The splitting up of a company into two or more companies.
• B) The distribution of shares in a subsidiary to existing parent company shareholders.
• C) Provisions allowing existing shareholders to purchase stock at some fixed price should an outside takeover bid take place, discouraging hostile takeover attempts.
• D) Attempts to gain control of a firm by soliciting a sufficient number of shareholder votes to replace existing management.
• E) A financial device designed to make unfriendly takeover attempts unappealing, if not impossible.

---

Definitions:

Carcinogens

Substances or exposures that can lead to cancer.

Chronic Health Effects

Persistent or long-term health consequences that can result from exposure to certain hazards, often developing after repeated or prolonged exposure.

Cancer

A disease characterized by the uncontrolled division of abnormal cells in a part of the body, often forming a mass or tumor.

Canadian Environmental Protection Act

A legislative framework in Canada aimed at preventing pollution and protecting the environment and human health.