The Defense of Private Equity Includes All of the Following

question 8

Short Answer

The defense of private equity includes all of the following points except:
a. While private equity results in job cuts, the same might happen if targets were acquired by public firms.
b. It would not be rational for private buyers to destroy their prize therefore they attempt to avoid doing that.
c. Their record as corporate citizens is no more barbaric than that of public firms.
d. They point to a Texas utility in which owners paid shareholders a 25% premium, gave retail customers a 10% price cut, and dropped plans to build eight dirty coal-fired power plants-hailed by environmentalists as a major victory.
e. The actions of U.S. private equity firms have enhanced the image of the U.S. and capitalism around the world.

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Definitions:

Video Game Players

Individuals who engage in playing video games as a hobby or professionally.

Geographical Area

Refers to a specific physical region or location on Earth, identified by its natural or human-made characteristics.

Effective Cartel

A group of independent market participants who collude to increase their profits by attempting to manipulate market prices or limit market supply.

Pure Monopoly

A market structure where a single firm or entity controls the entire supply of a product or service, with no close substitutes.