The Most Common Method for a Private Equity Investor to Get

question 20

Multiple Choice

The most common method for a private equity investor to get a return is:

• A) Receiving a regular dividend on earnings from the company.
• B) Outright sale to another company.
• C) Partial sale to another company.
• D) An initial public offering.

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Definitions:

Organized System

A structured set of components or entities that are interrelated and work together towards a particular goal or set of objectives.

Assumptions

Beliefs or statements taken for granted without proof.

Phenomena

Observable events or occurrences that can be investigated scientifically to understand their underlying principles.

Theory

An organized system of assumptions and principles that purports to explain a specified set of phenomena and their interrelationships.