Which of the Following Is Correct Concerning a Spin-Off

question 114

Multiple Choice

Which of the following is correct concerning a spin-off?

• A) A division of a firm is reconstituted as a new firm.
• B) An unprofitable division is divested.
• C) A division of a firm is bought by its managers.
• D) The spin-off generates no free cash flow.

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Definitions:

Overcompensation

A psychological term referring to the process of making up for perceived deficiencies and weaknesses by emphasizing strengths or developing new abilities.

Alfred Adler

An Austrian medical doctor and psychotherapist who founded the school of individual psychology, emphasizing the importance of feelings of inferiority and social interest.

Sports Car

A vehicle designed for high speed and performance, with great emphasis on handling, agility, and aesthetic appeal.

Reinforcement and Punishment

Techniques used in behavioral psychology to increase or decrease a specific behavior through rewards or penalties.