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:

Enamine

Derivatives of alkenes formed from the reaction between a secondary amine and a carbonyl group, often used as intermediates in organic synthesis.

Imine

A functional group or compound featuring a carbon-nitrogen double bond, often formed by the condensation of an aldehyde or ketone with an amine.

Racemizes

Refers to the process of converting an optically active compound into a racemic mixture, meaning a blend of equal amounts of enantiomers.

Esterifies

The process by which an ester is formed, usually from the reaction between an acid and an alcohol with the elimination of water.