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    Business
  3. Study Set
    Principles of Managerial Finance
  4. Exam
    Exam 18: Mergers, Lbos, Divestitures, and Business Failure
  5. Question
    A Spin-Off Is a Form of Divestiture in Which an Operating
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A Spin-Off Is a Form of Divestiture in Which an Operating

Question 72

Question 72

True/False

A spin-off is a form of divestiture in which an operating unit becomes an independent company by issuing shares in it, on a pro rata basis to the parent company's shareholders.

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