Which of the following statements is false?
A) Private equity firms often need to borrow the money needed to buy a public corporation.
B) Once a private equity firm owns a formerly publicly held corporation,they tend to cut costs and enhance efficiency.
C) Critics of private equity firms say that companies that have too much cash and too little debt become targets for private equity firms to buy.
D) A private equity firm is a group of investors that takes a privately held corporation and uses an investment banker to turn it into a publicly held corporation.

Question

Quizplus · Accepted Answer

The statement that a private equity firm uses an investment banker to turn a privately held corporation into a publicly held corporation is false. Private equity firms typically acquire companies that are already public or become a public company themselves through an initial public offering.

Which of the Following Statements Is False