ABC Created a New Company,XYZ,from Its Subsidiary Unit and Maintained

question 36

Multiple Choice

ABC created a new company,XYZ,from its subsidiary unit and maintained ownership of all of the shares in XYZ.When ABC felt market conditions were favorable,it did an IPO and sold 25 percent of its shares in XYZ.ABC has effectively completed

• A)a reversal.
• B)a divestiture.
• C)an equity carve-out.
• D)a spin-off.
• E)a split-up.

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Definitions:

Conflict Theory

A perspective in sociology that emphasizes the social, political, or material inequality of a social group, analyzing the conflict between competing interests.

Functionalism

A framework in sociology that explains social structures and institutions as parts of a cohesive system, each serving a specific function for the stability and continuance of society.

Psychoanalytic Theories

A set of theories originating from Sigmund Freud that focus on unconscious motivations and conflicts as key factors influencing behavior and personality.

Sigmund Freud

An Austrian neurologist and the founder of psychoanalysis, a clinical method for treating psychopathology through dialogue between a patient and a psychoanalyst.