The result of spin-off to the parent company is
A) additional stock to the parent.
B) additional cash from the sale.
C) additional debt by the parent.
D) no additional cash or stock to the parent.

Question

Quizplus · Accepted Answer

When a company spins off a division or subsidiary, the result is typically a separate, independent entity that operates on its own. The parent company may receive a portion of the new company's stock, but this is not always the case. There is usually no additional cash or debt involved in a spin-off for the parent company. Thus, the best choice is D - no additional cash or stock to the parent.

The Result of Spin-Off to the Parent Company Is