A subsidiary that is divested by proportionally "giving away"the shares to parent company shareholders is known as a
A) spin-off.
B) stock dividend.
C) dividend company.
D) stock split.

Question

Quizplus · Accepted Answer

A spin-off occurs when a parent company "gives away" shares of a subsidiary to its shareholders on a pro-rata basis, effectively creating a separate, independent company.

A Subsidiary That Is Divested by Proportionally "Giving Away"the Shares