The Parent Firm Generally Retains Control of the Business Involved

question 149

True/False

The parent firm generally retains control of the business involved in an equity carve-out.

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Definitions:

Financing Activities

Activities that result in changes in the size and composition of the equity and borrowings of a company.

Common Stock

Equity securities that represent ownership in a corporation, giving holders voting rights and a share in the company's profits through dividends.

Long-term Borrowings

Loans and financial obligations lasting more than one year, used by businesses to finance major investments or acquisitions.

Financing Activities

Transactions and events that affect the long-term liabilities and equity of a company, including issuing debt and equity.