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:

Vicarious Reinforcement

A learning process that occurs through observing someone else being rewarded for a behavior, which increases the likelihood of the observer repeating the behavior.

Optimistic

Having a positive, hopeful perspective on the future or the outcome of specific endeavors.

Constructs

Abstract ideas or concepts not directly observable but used to understand and explain aspects of the world.

Predispositions

Tendencies or inclinations to think, act, or feel in a particular way that may be influenced by genetic, environmental, or psychological factors.