10. A private equity fund that is most likely to be described as ( ) is a fund that invests in established profitable and cash-generating companies:
A. venture capital.
B. fundamental growth.
C. leveraged buyout.
Correct Answer: C
Answer Explanation:
A private equity fund that invests in an established company with strong profitability and cash flow is most likely to be called a leveraged buyout. The target company’s cash flow is expected to be sufficient to service its debt.
