Which of the Following Is the Best Definition of a Spin-Off

question 13

Multiple Choice

Which of the following is the best definition of a spin-off?

• A) The splitting up of a company into two or more companies.
• B) The distribution of shares in a subsidiary to existing parent company shareholders.
• C) Provisions allowing existing shareholders to purchase stock at some fixed price should an outside takeover bid take place, discouraging hostile takeover attempts.
• D) Attempts to gain control of a firm by soliciting a sufficient number of shareholder votes to replace existing management.
• E) A financial device designed to make unfriendly takeover attempts unappealing, if not impossible.

Grasp the importance of conciseness and clarity in professional communication for effective message delivery.

Distinguish between situations that require different approaches in tone, structure, and language.

Understand the principles of effective business communication, including correctness, clarity, and appropriateness.

Recognize the importance of revision, editing, and proofreading in creating correct messages.

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Definitions:

Interest Rate

is the percentage of principal charged by the lender for the use of its money or the return earned on deposit accounts.

Present Value

The current value of a future amount of money or stream of cash flows, discounted at a particular interest rate.

Simple Interest

Interest assessed only on the principal sum, or on the part of the principal that still needs to be repaid.

Principal Amount

The original sum of money borrowed in a loan or invested, distinct from interest or profit earned.