Which of the Following Is Not True of a Split-Off

question 141

Multiple Choice

Which of the following is not true of a split-off?

• A) A split-off is a variation of a spin-off
• B) Parent company shareholders receive shares in a subsidiary in return for surrendering their parent company shares
• C) Split-offs are best suited for disposing of a less than 100 percent investment stake in a subsidiary,
• D) A split-off reduces the parent firm's earnings per share.
• E) The split-off reduces the pressure on the spun-off firm's share price

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Definitions:

Welfare Reform

A process aimed at improving the effectiveness and efficiency of social safety nets designed to support the impoverished and vulnerable members of society by modifying policies and regulations.

Business Income

Income generated from the day-to-day activities of running a business or company, including revenues from sales and services minus costs and expenses.

Emigrate

To leave one's country of origin to live permanently in another.

Economic Immigration

The movement of individuals from one region to another for the purpose of seeking better employment opportunities, contributing to the workforce and economic growth of the host country.