Whole-firm LBOs tend to result in all EXCEPT the following negative outcomes:
A) increased risk of bankruptcy.
B) failure to invest in R&D.
C) risk-averse management.
D) inefficient operations.

Question

Quizplus · Accepted Answer

Whole-firm LBOs often lead to increased risk of bankruptcy, failure to invest in R&D, and risk-averse management due to high debt levels and focus on short-term financial performance. However, they typically aim to improve operational efficiency, not result in inefficient operations.

Whole-Firm LBOs Tend to Result in All EXCEPT the Following