Which of the Following Is Not True Regarding an Equity

question 85

Multiple Choice

Which of the following is not true regarding an equity carve-out?

• A)It can result in the creation of minority interests.
• B)It arises when a combinor sells a portion of its interest in a combinee.
• C)It arises when a combinor dilutes its interest through an initial public offering of the subsidiary.
• D)The SEC requires resulting carve-out gains to be booked as non-operating income.
• E)It can result in the creation of minority interests

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