An Equity Carve-Out Differs from a Spin-Off for All but Which

question 16

Multiple Choice

An equity carve-out differs from a spin-off for all but which one of the following reasons?

• A) Generates a cash infusion into the parent
• B) Is undertaken when the unit has very little synergy with the parent
• C) The proceeds often are taxable to the parent
• D) Continues to be influenced by the parent's management and board
• E) The carve-out's shareholders may differ from those of the parent's shareholders

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