All of the Stock of P Corporation Is Owned by Two

question 62

Multiple Choice

All of the stock of P Corporation is owned by two individuals, J and K.P owns all of the stock of Q that it acquired by purchase 10 years ago.P manufactures disk drives while Q manufactures floppy disks.Both corporations have substantial E&P.J and K are deadlocked on the direction of their businesses.As a result, they have agreed to go their separate ways with J taking over the business of Q.The most logical way to accomplish their objective is a

• A)Spin-off
• B)Split-off
• C)Split-up
• D)Partial liquidation
• E)Redemption

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Definitions:

Third-Variable Problem

A situation in correlational research where a variable not studied is the true cause of the relationship observed between the variables of interest.

Variance

A measure of the variability of scores about a mean; the mean of the sum of squared deviations of scores from the group mean.

Regression Equation

A mathematical representation of the relationship between a dependent variable and one or more independent variables.

Constant

A value that does not change in mathematical expressions or scientific experiments, contrasted with variables which can vary.