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Unformatted text preview: III) Transfer business units to the companies that can manage them more efficiently A. I only B. I and II only C. I, II, and III D. III only 4. 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, parent company has the majority control 2 5. The main characteristics of Leveraged Buy Outs (LBOs) are: A. High debt B. Private ownership C. Management incentives D. All of the above...
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This note was uploaded on 05/09/2011 for the course FNAN 522 taught by Professor Wilson during the Spring '11 term at University of Louisiana at Lafayette.
- Spring '11