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Equity carve-out differs from spin-off in that carve-out involves:
ADistribution of subsidiary shares without raising cash
BInternal transfer of a subsidiary to a holding company
CIPO of a subsidiary's minority stake to raise cash for the parent
DCompulsory winding up of a subsidiary
Answer & Solution
Correct answer: C. IPO of a subsidiary's minority stake to raise cash for the parent
1. Identify what the question asks: this concept maps to carveout (§7.2.4).
2. Apply the framework or formula relevant to the topic.
3. Eliminate distractors and arrive at the correct option (C).
_Source: ICAI BoS CA Final Paper 2, Ch 14 "Mergers Acquisitions and Corporate Restructuring"_
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