Sarcosine Chemicals Corp

Multiple Choice

Sarcosine Chemicals Corp. issues stock in one of its operating units and sets it up as a separate company called Prussic Corp., with its own board of directors and corporate officers. Sarcosine Chemicals Corp. then distributes the stock in Prussic Corp. to its existing stockholders. Which of the following forms of divestitures does this scenario exemplify?

A) A spin-off
B) A tender offer
C) A carve-out
D) A stock swap