When a Corporate Parent Creates an Independent Company and Divests

question 46

Multiple Choice

When a corporate parent creates an independent company and divests it by distributing to its stockholders new shares in the business, it is called

• A) a spinoff.
• B) a wholly-owned subsidiary.
• C) a functional divesture.
• D) fully-diluted stock.
• E) a restructure.

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Definitions:

Walter Mischel

A psychologist best known for his work on personality theory and cognitive-affective behavior, including the famous marshmallow test on delayed gratification.

Situationism

Situationism is the theory that behavior is more strongly influenced by external, situational factors than by internal traits or motivations, emphasizing the power of context in shaping human actions.

Personality Coefficient

A statistical measure that quantifies the relationship between personality traits and various outcomes or behaviors.

Relative Consistency

The concept that an individual's behavior is more consistent within similar situations than across different situations.