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

Actual exam question for CIMA's CIMAPRA19-F03-1 exam

Question #: 21
Topic #: 7

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

ARaises finance to fund new projects.

BChanges the ownership structure of the core entity by introducing new shareholders.

CAllows investors to identify the true value of the demerged business.

DIncreases the risk of a takeover bid for the core entity.

Show Suggested Answer

Suggested Answer: C

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

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