In a Spin-Off

question 57

Multiple Choice

In a spin-off:

• A)shares of the new company are given to shareholders of the parent company.
• B)shares of the new company are sold as a public offering.
• C)shares of the new company are bought by borrowing or issuing junk bonds.
• D)a private equity firm sells the assets of a portion of an acquired company.

---

Definitions:

Legal Process

The procedures and activities involved in enforcing the law, including litigation, adjudication, and the application of legal principles in courts.

Intellectual Property

A category of property that includes intangible creations of the human intellect, such as inventions, literary and artistic works, designs, and symbols.

Market Share Analysis

The evaluation of a company's product or service market's size, and its competitors' share within that market.

Competitors

Businesses or individuals that offer similar products or services and compete for the same customers or market share.