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CIMAPRA19-F03-1 Exam - Topic 7 Question 21 Discussion

Which of the following statements is true of a spin-off (or demerger)?
C) Allows investors to identify the true value of the demerged business.
A) Raises finance to fund new projects.
B) Changes the ownership structure of the core entity by introducing new shareholders.
D) Increases the risk of a takeover bid for the core entity.

CIMAPRA19-F03-1 Exam - Topic 7 Question 21 Discussion

Actual exam question for CIMA's CIMAPRA19-F03-1 exam
Question #: 21
Topic #: 7
[All CIMAPRA19-F03-1 Questions]

Which of the following statements is true of a spin-off (or demerger)?

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Suggested Answer: C

by Deonna at May 08, 2022, 03:15 PM

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Josue
7 months ago
Wait, can a spin-off really increase takeover risks? That seems surprising!
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Earnestine
7 months ago
Totally agree with B, new shareholders can change everything!
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Felton
8 months ago
Not sure about D, that sounds a bit exaggerated.
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Kayleigh
8 months ago
I think C is spot on! It really helps investors see the real value.
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Francine
8 months ago
Spin-offs can definitely raise finance for new projects.
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Hortencia
8 months ago
This question seems pretty straightforward. I think the key is to focus on what's most important to employees when it comes to talent development.
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Novella
8 months ago
Okay, let's think this through step-by-step. I need to calculate the absolute risk reduction between the two groups.
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