Which of the following statements regarding spin-offs and carve-outs is not true?
A) Spin-offs are not taxed if the shareholders of the parent company are given a majority of shares in the new company.
B) Spin-offs are not taxed if the shareholders of the parent company are given at least 80% of the shares in the new company.
C) Gains or losses from carve-outs are taxed at the corporate tax rate.
D) In carve-outs,the parent company retains majority control.
Correct Answer:
Verified
Q22: The Chrysler bankruptcy and reorganization into New
Q23: A conglomerate discount refers to which circumstance?
A)The
Q24: The simplest way to divest an asset
Q25: A conglomerate is a firm that
A)invests in
Q27: The following statements are true of private-equity
Q28: The following are important motives for privatization
Q29: Private-equity investment funds are organized as
A)C-corporations.
B)sole proprietorships.
C)partnerships.
D)nonprofit
Q30: Asset sales are common in:
A)manufacturing.
B)banking.
C)services.
D)none of these
Q35: The following are private equity funds:
A)Blackstone.
B)Cerberus Capital
Q38: Most privatizations resemble
A)spin-offs.
B)carve-outs.
C)LBOs.
D)both spin-offs and carve-outs.
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