Please provide answer to the question below and why? Solution When a company plans to separate a business from itself by giving its shares to its existing shreholders it is known as Spin Off. Thus the naswer is None of the above In a statutory merger of the two companies one company continues to eist post merger as a legal entity. .

1. Please provide answer to the question below and why?
Question 8:
Sub Company was a former business activity segment of Parent Company. Sub
Company shares were issued to Parent Company shareholders. This can best be
described as which of the following?
a) External Expansion
b) Internal Expansion
c) Statutory Merger
d) None of the above
Solution
When a company plans to separate a business from itself by giving its shares to its existing
shreholders it is known as Spin Off. Thus the naswer is None of the above
In a statutory merger of the two companies one company continues to eist post merger as a legal
entity.