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  2. Topic
    Business
  3. Study Set
    Mergers Acquisitions
  4. Exam
    Exam 16: Alternative Exit and Restructuring Strategies: Divestitures, spin-Offs, carve-Outs, split-Ups, and Split-Offs
  5. Question
    A Spin-Off Is a Transaction in Which a Parent Creates
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A Spin-Off Is a Transaction in Which a Parent Creates

Question 67

Question 67

True/False

A spin-off is a transaction in which a parent creates a new legal subsidiary and distributes shares it owns in the subsidiary to its current shareholders as a stock dividend.

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