Which of the Following Is the Best Definition of an Equity

question 53

Multiple Choice

Which of the following is the best definition of an equity carve-out?

• A) The sale of stock in a wholly owned subsidiary via an IPO.
• B) A targeted share repurchase method.
• C) The sale of assets, operations, divisions, and/or segments of a business to a third party.
• D) Investment in more than one asset; returns do not move proportionally in the same direction at the same time, thus reducing risk.
• E) Rules and practices relating to how corporations are governed by management, directors, and shareholders.

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Definitions:

Cartilage Models

Represents a phase in endochondral ossification where cartilage is eventually replaced by bone.

Skull

The bony structure forming the head, protecting the brain, and supporting the structures of the face.

Endochondral

Pertaining to the process by which bone tissue is created from cartilage, a critical path in the formation of the skeletal system of vertebrates.

Intramembranous Ossification

A process by which bone tissue forms directly from mesenchymal tissue without first forming cartilage.