A "Privatization" Is the Same Type of Transaction as Taking

question 17

True/False

A "privatization" is the same type of transaction as taking a company private in an LBO.

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Definitions:

Limited Partner

An investor in a limited partnership who is not personally liable for the partnership's debts beyond the amount of their investment.

General Partner

An owner of a partnership who has unlimited personal liability for the debts and obligations of the business and can participate in its management.

Certificate of Limited Partnership

A legal document filed with a governmental body to form a limited partnership.

Oral Agreement

A contract that has been agreed to by speaking rather than in writing. Although legally binding, they are often harder to prove in court.