Which One of the Following Statements Is Correct

question 63

Multiple Choice

Which one of the following statements is correct?

• A)A spin-off frequently follows an equity carve-out.
• B)A split-up frequently follows a spin-off.
• C)An equity carve-out is a specific type of acquisition.
• D)A spin-off involves an initial public offering.
• E)A divestiture means that the original firm ceases to exist.

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Definitions:

Framing Error

A cognitive bias involving the presentation or "framing" of information in a way that influences decision making or perception.

Satisficing

The process of choosing an adequate solution that meets minimum criteria, often used in decision-making when an optimal solution is unfeasible.

Overconfidence

The state of being overly convinced of one's abilities or correctness, often without sufficient reason or justification.

Decision Rule

A guideline or criteria set for making choices among alternatives in a decision-making process.