Answer (B) is correct . An equity carve-out involves the sale of a portion of the firm through an equity offering of shares in the new entity to outsiders.
Answer (A) is incorrect because A spin-off is the creation of a new separate entity from another entity, with the new entity’s shares being distributed on a pro rata basis to existing shareholders of the parent entity.
Answer (C) is incorrect because A leveraged cash-out is borrowing heavily to issue a very large dividend that acts as a poison pill.
Answer (D) is incorrect because In a liquidation, assets are sold piecemeal.
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