The Following Are Advantages of Spin-Offs

question 41

Multiple Choice

The following are advantages of spin-offs:
I.They widen investor choice by allowing them to invest in just one part of the business.
II.They can improve incentives for managers.
III.By spinning off businesses with "poor fit," parent firms can concentrate on their core businesses.
IV.They relieve investors of the worry that funds will be siphoned off from one business to support unprofitable capital investments in another.

• A)I and II only
• B)I, II, and III only
• C)I, II, III, and IV
• D)III and IV only

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Definitions:

General Impression

An overall or summary opinion formed about something or someone, often without detailed analysis or based on limited information.

Innate System

The innate system typically refers to inborn biological structures or mechanisms that come naturally, without being learned or acquired.

Survival Value

The degree to which a behavior or trait increases the chances of an individual or species to survive and reproduce.

Observable Characteristics

Traits or features of individuals or objects that can be directly seen or measured.