Which of the Following Statements Is False

question 41

Multiple Choice

Which of the following statements is false?

• A) Private equity firms often need to borrow the money needed to buy a public corporation.
• B) Once a private equity firm owns a formerly publicly held corporation,they tend to cut costs and enhance efficiency.
• C) Critics of private equity firms say that companies that have too much cash and too little debt become targets for private equity firms to buy.
• D) A private equity firm is a group of investors that takes a privately held corporation and uses an investment banker to turn it into a publicly held corporation.