Which One of the Following Statements Is Correct

question 241

Multiple Choice

Which one of the following statements is correct?

• A) A spin-off frequently follows an equity carve-out.
• B) A split-up frequently follows a spin-off.
• C) An equity carve-out is a specific type of acquisition.
• D) A spin-off involves an initial public offering.
• E) A divestiture means that the original firm ceases to exist.

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Definitions:

Household Income

The total amount of income earned by members of a household, including wages, salaries, benefits, and other income streams.

Total Income

The sum of all earnings or revenues received by an individual or organization, including wages, salaries, investment returns, and other sources.

Growing Income Inequality

The increasing gap in the distribution of income among individuals or households within a society.

Flow of Earnings

Refers to the movement of profits or income generated by a business or investment over time.