When taking a particular course of action for a private equity firm, the CEO of a privately held company needs to convince _________ that it is a good decision.
A: the shareholders
B: the managing partners
C: no one
D: both (a) and (b)
A: the shareholders
B: the managing partners
C: no one
D: both (a) and (b)
举一反三
- An additional perk of a private equity firm is that the profits for both CEOs and the partners are taxed at the 15% capital gains rather than the 35% rate they would suffer if the income was received as income.
- Which of the following statements is not correct regarding a firm's decision-making? A: The decision to shut down and the decision to exit are both short-run decisions. B: The decision to shut down and the decision to exit are both long-run decisions. C: The decision to shut down is a short-run decision, whereas the decision to exit is a long-run decision. D: The decision to exit is a short-run decision, whereas the decision to shut down is a long-run decision.
- The( ) usually appoints a ( ) to take responsibilities for the company's daily operation. A: Shareholders CEO B: Board CEO C: Board CFO D: Shareholders CFO
- Which of the following statement is not correct for a CEO of a publicly held company? A: CEO is the authority of the company B: CEO is in charge of the entire management organization within a company C: CEO is the highest-ranking executive in a company D: CEO is responsible for the board of directors
- A levered firm is one that has ________ outstanding. A: debt B: equity C: preferred stock D: equity options