In A(n) __________, the Parent of a Multiple-Subsidiary Firm Issues

question 8

Multiple Choice

In a(n) __________, the parent of a multiple-subsidiary firm issues, via an IPO, equity shares for a particular subsidiary, though the parent usually keeps majority ownership of the shares, and thus control of the subsidiary.

• A)asset sale
• B)spin-off
• C)equity carve-out
• D)targeted stock issuance

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Definitions:

Plan Assets

The resources that a pension plan has accumulated to cover future obligations to participants.

Amortization of Prior Service Costs

The process of gradually writing off the initial costs of services received or obligations incurred in the past, over the service periods of the involved employees.

Pension Accounting and Reporting

The process of recording and communicating information regarding a company's pension obligations and related costs in its financial statements.

Fund Asset Gains and Losses

Changes in the value of investment holdings in a fund that impact its overall performance.