Which One of the Following Statements Is Correct

question 30

Multiple Choice

Which one of the following statements is correct?

• A)A carve-out generates cash for the parent firm.
• B)A split-up frequently follows a spin-off.
• C)A carve-out is a specific type of acquisition.
• D)A spin-off involves an initial public offering.
• E)A divestiture means that the original firm ceases to exist.

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Definitions:

Marbury v. Madison

A landmark case in 1803 where the U.S. Supreme Court first declared the power of judicial review, establishing the basis for the judiciary's ability to declare laws unconstitutional.

Judicial Review

Judicial review is the doctrine under which legislative and executive actions are subject to review by the judiciary to affirm their legality or compliance with the constitution.

Constitutionality

The quality of being in accordance with the constitution or being authorized by the constitution.

Supreme Court

The highest judicial court in a country or state, often having the final say in legal matters and interpretations of the law.