Question: 1. Question 1 Select the statement that is true about spinoffs: 1 point In spinoffs, acquirer firm distributes the target firm's shares to the shareholders

1. Question 1 Select the statement that is true about spinoffs: 1 point In spinoffs, acquirer firm distributes the target firm's shares to the shareholders of the target firm. In spinoffs, target firm distributes the acquirer firm's shares to the shareholders of the target firm. In spinoffs, acquirer firm distributes the target firm's shares to the shareholders of the acquirer firm. In spinoffs, target firm distributes the target firm's shares to the shareholders of the acquirer firm. None of the above 2. Question 2 Spinoffs are cash free and non-reciprocal transactions. 1 point True False 3. Question 3 Which of the following is a reasons for spinoffs? 1 point An opportunity to invest non-core businesses and increase focus. A mechanism to unlock the value of the spun-off unit. Giving shareholders flexibility to decide on which part of the conglomerate they want to divest in. All of the above 2 of the above 4. Question 4 How are spinoffs accounted for? 1 point Increase in Retained earnings account & In

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