Which of the Following Statements Regarding Spin-Offs and Carve-Outs Is

question 44

Multiple Choice

Which of the following statements regarding spin-offs and carve-outs is not true?

• A)Spin-offs are not taxed if the shareholders of the parent company are given a majority of shares in the new company.
• B)Spin-offs are not taxed if the shareholders of the parent company are given at least 80% of the shares in the new company.
• C)Gains or losses from carve-outs are taxed at the corporate tax rate.
• D)In carve-outs,the parent company retains majority control.

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Definitions:

Meganational Strategy

No real key term defined as "Meganational Strategy."

Subsidiary Human Capital

The skills, knowledge, and experience possessed by an individual or population, viewed in terms of their value or cost to an organization or country’s subsidiary entities.

International Human Capital

The skills, knowledge, and experience possessed by individuals on a global scale that can be leveraged by employers.

Transnational Companies

Businesses that operate across national borders, maintaining a central headquarters but distributing production and services in multiple countries.