When a Firm Spins Off a Unit, It Creates New

question 9

True/False

When a firm spins off a unit, it creates new shares of stock representing the unit and distributes them to its existing shareholders.

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Definitions:

Cumulative Net Profit

The total profit a company has earned after all expenses and taxes are subtracted, accumulated over a period of time.

Third Year

This refers to the third academic year in a sequence, commonly used in educational settings.

Probability

An assessment of how probable it is for an event to take place, represented by a value ranging from 0 to 1.

Chart Bins

Groupings of data points within a chart, used in histogram or bar charts to organize a range of data into manageable intervals.