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What Are the Common Motivations for Leveraged and Management Buyouts

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What are the common motivations for leveraged and management buyouts of the firm?


Definitions:

Self-serving Bias

The common habit of a person taking credit for positive events or outcomes, but blaming outside factors for negative events.

Locus Of Control Bias

A cognitive bias where an individual attributes successes and failures to either internal or external factors disproportionately.

Achievement-related Results

Outcomes or successes in tasks or goals that are valued in a cultural or societal context, often measured through performance or attainment.

Weiner's Attribution Theory

A theory that suggests people tend to attribute causes to their successes and failures based on three main factors: locus of control, stability, and controllability.

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