Splitting AT&T in 1996 into Four Separate Firms Is an Example

question 56

Multiple Choice

Splitting AT&T in 1996 into four separate firms is an example of a:

• A) leveraged buyout.
• B) spin-off.
• C) management buyout.
• D) tender offer.

---

Definitions:

Income Tax

Taxes imposed by the government on the income generated by individuals and businesses within their jurisdiction.

Understated Inventory

A situation where the inventory's book value is reported lower than its actual value, potentially affecting financial statements adversely.

Inventory Turnover Ratio

A financial metric indicating the number of times a company's inventory is sold and replaced over a specific period.

Average Days

A term that could refer to various average time periods calculated in business contexts, such as average days in inventory, but needs more specificity to define accurately.