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.

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Definitions:

Social Facilitation

The tendency for people to perform differently when in the presence of others than when alone, typically improving on simple or well-learned tasks.

Cognitive Dissonance

The mental discomfort experienced when holding two or more contradictory beliefs, values, or ideas simultaneously.

Social Loafing

is the phenomenon where individuals exert less effort when working in a group compared to when working alone.

Collective Tasks

Activities or missions performed by a group working towards a common objective or goal.