Which of the following statements is true of a spin-off (or demerger)?

Which of the following statements is true of a spin-off (or demerger)?
A . Raises finance to fund new projects.
B . Changes the ownership structure of the core entity by introducing new shareholders.
C . Allows investors to identify the true value of the demerged business.
D . Increases the risk of a takeover bid for the core entity.

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Answer: C