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1. Which of the following statements accurately describe equity carve-outs? The parent company does not receive cash from the shares sold in the new entity.

1. Which of the following statements accurately describe equity carve-outs?

The parent company does not receive cash from the shares sold in the new entity.

More than one of the other statements are correct.

The parent company maintains a significant ownership in the new entity.

None of the other statements are correct.

It can eventually lead to a spin-off.

2. Which of the following statements accurately describe the imputation tax system?

It is a common taxation system throughout the world.

None of the other statements are correct.

More than one of the other statements are correct.

It is designed to prevent double taxation.

It incentivizes firms to keep retain franking credits for future use.

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