Quiz Ch 32 – T/F Managerial Role in the Occurrence of LBOs
Principles of Corporate Finance
Brealey, Myers, and Allen
13th Edition
True or false: LBOs are results of shareholder value NOT maximized by managers.
True or false: LBOs are results of shareholder value NOT maximized by managers.
True or false: Private-equity partnerships navigate around the inherent free cash flow challenge that conglomerates commonly confront.
True or false: In the United States, Chapter 7 and Chapter 11 of the 1978 Bankruptcy Reform Act outline the two common types of bankruptcy procedures.
True or false: A privatization entails transferring ownership of a government-owned company to private investors through a sale.
True or false: Private-equity partnerships are crafted to manage portfolio companies for an extended duration.
True or false: A “privatization” mirrors the action of privatizing a company through an LBO.
True or false: Leveraged buyouts and acquisitions are synonymous.
True or false: As long as shareholders of the parent company receive at least 80 percent of the shares in the new company, spin-offs are not subject to taxation.
For spin-offs to be tax-free, what minimum percentage of shares in the new company must be given to shareholders of the parent company?
Which accurately describes limited partnerships?