Family Travel Is the Sole Shareholder in Its Subsidiary, FT

question 45

Multiple Choice

Family Travel is the sole shareholder in its subsidiary, FT Insurance. Family Travel has decided to divest itself of its insurance operations and does so by distributing the shares in the subsidiary to the shareholders of Family Travel. This distribution of shares is called a(n) :

• A) lockup transaction.
• B) bear hug.
• C) equity carve-out.
• D) spin-off.
• E) split-up.

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Definitions:

Acceptable Name

A term used to indicate a name for a chemical compound that is approved by a recognized authority, such as the International Union of Pure and Applied Chemistry (IUPAC).

Starting Materials

The reactants used at the beginning of a synthetic chemical reaction.

Structures

The arrangement of atoms in a molecule.

Organic Product

A compound or material derived from living organisms or the result of organic reactions.