An Equity Carve-Out Differs from a Spin-Off for All but Which

question 58

Multiple Choice

An equity carve-out differs from a spin-off for all but which one of the following reasons?

• A) Generates a cash infusion into the parent
• B) Is undertaken when the unit has very little synergy with the parent
• C) The proceeds often are taxable to the parent
• D) Continues to be influenced by the parent's management and board
• E) The carve-out's shareholders may differ from those of the parent's shareholders

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Definitions:

Basal Metabolism

The minimum rate of energy expenditure per unit time by endothermic animals at rest, necessary to maintain basic bodily functions.

Aerobic Metabolism

The process of producing cellular energy involving oxygen. It's the way the body turns food into energy through a series of chemical reactions in the presence of oxygen.

Anaerobic Metabolism

A form of metabolism that occurs in the absence of oxygen, allowing cells to produce energy for short bursts of intense activity.

Homeostatic Regulation

The process by which a stable internal environment is maintained within an organism despite changes in external conditions.