Which of the Following Statements Regarding Spin-Offs and Carve-Outs Is

question 24

Multiple Choice

Which of the following statements regarding spin-offs and carve-outs is not true?

• A) Spin-offs are not taxed if the shareholders of the parent company are given a majority of shares in the new company
• B) Spin-offs are not taxed if the shareholders of the parent company are given at least 80% of the shares in the new company
• C) Gains or losses from carve-outs are taxed at the corporate tax rate
• D) In Carve-outs, parent company has the majority control

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Definitions:

Abstinence

The act of refraining from or not engaging in certain activities or consumptions, particularly those considered harmful or addictive, such as alcohol or drugs.

Controlled Drinking

A harm reduction approach aiming at moderating alcohol consumption to reduce its negative health and social consequences.

Moderate Drinking

The consumption of alcohol within the limits recommended by health guidelines, typically not exceeding two drinks per day for men and one drink per day for women.

Health Benefits

Pertains to positive effects on the well-being and health status of an individual, often resulting from actions such as regular exercise, balanced diet, or proper medical care.