Which of the Following Is Not True of a Divestiture

question 77

Multiple Choice

Which of the following is not true of a divestiture?

• A) May create cash infusion for the parent firm
• B) Parent ceases to exist
• C) Proceeds of sale taxable if returned to shareholders through a dividend or stock buyback
• D) A new legal subsidiary may be created
• E) B and C

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Definitions:

Telepathy

The purported transmission of information from one person to another without using any known human sensory channels or physical interaction.

Kinesthesia

The sense of movement, referring to the perception of the body's own movements and position.

Mapping

The process of creating visual representations of physical areas on Earth, detailing geographic features, boundaries, and elements for navigation, planning, or analysis.

Development

The process of economic growth, expansion, or realization of regional resource potential, often associated with improvements in the quality of life and living standards.