Private Equity Funds Commonly Exit Their Investment in a Business

question 35

Multiple Choice

Private equity funds commonly exit their investment in a business by

• A) selling their stake to another company.
• B) engaging in a credit default swap with the business.
• C) investing in shares of the business when the business engages in an IPO.
• D) repurchasing shares of their own stock in the secondary market.

---

Definitions:

Assertive Behavior

Communication and behavior marked by confidence and self-assuredness, respecting one's own rights while also respecting the rights of others.

Guilt

A feeling of having done wrong or failed in an obligation.

Acceptance

The act of receiving or agreeing to something, acknowledging its validity or legality.

Bias

A preconceived opinion or preference that can influence judgment and decisions unconsciously or consciously.