Which of the Following Statements Is NOT True

question 48

Multiple Choice

Which of the following statements is NOT true?

• A) Private equity firms pool money from wealthy investors, pension funds, insurance companies, and other sources to make investments.
• B) Private equity firms invest in more mature companies.
• C) Agency problems tend to be more in firms owned by private equity investors than in public firms.
• D) Private equity investors focus on firms that have stable cash flows because they use a lot of debt to finance their acquisitions.

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Definitions:

Kaplan And Norton

Kaplan and Norton are the creators of the Balanced Scorecard, a strategic management tool that measures organization performance beyond traditional financial metrics.

Balanced Scorecard

A strategic planning and management system that organizations use to communicate what they are trying to accomplish, align the day-to-day work that everyone is doing with strategy, monitor organization performance against strategic goals, and improve various aspects of performance.

Financial Perspective

An angle focusing on the monetary aspects of business, including profitability, revenue growth, and fiscal health.

Traditional Performance

The evaluation of an entity's performance based on historical financial metrics and objectives.