In the context of equities What is called a firm with two divisions that may split into two companies and issue original shareholders two shares for every old share they have ?
Correct answer: D. Butterfly
- A. Spreadsheet
- B. Splinter
- C. Family growth
- D. Butterfly
Explanation
A butterfly is a corporate restructuring in which a company separates divisions into distinct companies, with existing shareholders receiving shares in the resulting entities. The other choices are not standard equity terms for this arrangement.
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Individual consumers, firms and markets are examined through demand and supply, elasticity, consumer choice, production, costs, revenue and the determination of prices and output. The topic also covers market structures such as perfect competition, monopoly and oligopoly, plus market failure, externalities and the distinction between microeconomic decisions and economy-wide outcomes.
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