In a carve-out, a firm:
A) distributes the stock of its new company to existing shareholders.
B) distributes the stock of its new company to outside investors.
C) purchases a company in a new industry and sells its shares to existing shareholders.
D) purchases a company in a new industry and sells its shares to outside investors.
Question 2
Karen Howard loves to cook and receives unqualified praise whenever she prepares a meal for someone. Encouraged by these compliments and eager to put her culinary talents to good use, Karen decides to open a small neighborhood restaurant. Since she plans to maintain complete control of the business, she will most likely organize it as a
A) limited partnership.
B) corporation.
C) general partnership.
D) cooperative.
E) sole proprietorship.
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