A _________ occurs when the subsidiary’s shares are distributed to the combinor’s shareholders in exchange for shares of the parent’s stock.

a. spin-off
b. split-off
c. split-up
d. sell-off


ANSWER: B

Business

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A. individualist–collectivist B. long- or short-term orientation C. uncertainty avoidance D. power distance

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The innovation dilemma known as seeds versus weeds refers to

A. choosing to pursue product rather than process innovations. B. choosing to pursue radical rather than incremental innovations. C. promoting organizational stars onto innovation teams rather than involving all employees in innovation efforts. D. choosing which innovation ideas are most likely to "bear fruit."

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a. liquidating activities. b. operating activities. c. investing activities. d. financing activities.

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U.S. GAAP and IFRS requires firms to use a cost-flow assumption that matches the actual physical flow of units within the firm

Indicate whether the statement is true or false

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