The result of spin-off to the parent company is ________.
A) additional stock to the parent through stock dividend
B) additional cash from the sale
C) additional debt by the parent through issue of bonds
D) no additional cash to the subsidiary

Question

Quizplus · Accepted Answer

In a spin-off, the subsidiary becomes a separate and independent company, and its shares are distributed to the parent company's shareholders as a stock dividend. The parent company does not receive any additional cash or debt through this process, only additional shares in the newly formed subsidiary.

The Result of Spin-Off to the Parent Company Is ________