What Is It Called When the Corporate Parent Creates an Independent

question 107

Multiple Choice

What is it called when the corporate parent creates an independent company and divests it by distributing to its stockholders new shares in the business?

• A) A spinoff.
• B) A wholly-owned subsidiary.
• C) A functional divesture.
• D) Fully-diluted shares.
• E) All of these.

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Definitions:

Part-Time Work

Employment with fewer hours per week than a full-time job, often without the same benefits as full-time employment.

Necessities

Basic needs that are essential for human survival and well-being, including food, water, shelter, and clothing.

Interlocking Directorates

The practice of sharing board members among different companies, which can lead to a concentration of power and influence.

Board of Directors

A group of elected or appointed members who jointly oversee the activities and governance of a company or organization.