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 is called
A. leverage buyout.
B. employee stock option.
C. spin-off.
D. merger.
Answer:C
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 is called
A. leverage buyout. B. employee stock option. C. spin-off. D. merger.