The Following Are Advantages of Spin-Offs

question 44

Multiple Choice

The following are advantages of spin-offs:
I. they widen investor choice by allowing them to invest in just one part of the business.
II. they can improve incentives for managers.
III. by spinning of businesses with "poor fit" parent firms can concentrate on its main activities.
IV. they relieve investors of the worry that funds will be siphoned off from one business to support unprofitable capital investments in another.

• A) I and II only
• B) I, II and III only
• C) I, II, III and IV
• D) III and IV only

---

Definitions:

Variable

An element, feature, or factor that is liable to vary or change.

Characteristic

A feature or quality belonging typically to a person, place, or thing and serving to identify it.

Categorical Variables

Variables that represent types or categories that can be named or labeled without implying any numerical order.

Cases

Instances or occurrences of a particular condition or category being studied in research or documented in various fields such as law or medicine.