Which of the Following Is a Benefit for Investors When

question 13

Multiple Choice

Which of the following is a benefit for investors when the buyout happens?

• A) Does not get equity in the acquired business
• B) The right of first refusal to invest additional capital in the acquired business
• C) Are obligated to invest in all stages of acquisition
• D) Searchers are inexperienced and hence, they can easily be convinced to agree to what investors say

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Definitions:

Direct Non-Controlling Interest

A portion of equity in a subsidiary not attributable directly to the parent company, representing minority shareholders' stake in the entity.

Direct Non-Controlling Interest

A proportional interest in a subsidiary not held by the parent company, representing a share in the equity and profits of the subsidiary.