Which of the following funds make investments in established businesses?
A)Capital buyout funds
B)Venture capital funds
C)Mutual funds
D)LBO funds

Question

Quizplus · Accepted Answer

Capital buyout funds typically make investments in established businesses that have a proven track record and are generating stable cash flows. These investments may include management buyouts, acquisitions, or refinancing of existing debt. Venture capital funds, on the other hand, typically invest in early-stage businesses with high growth potential but higher risk. Mutual funds typically invest in a diversified portfolio of stocks, bonds, and other securities. LBO funds, or leveraged buyout funds, typically use a significant amount of debt to acquire established businesses and then use the cash flows from those businesses to repay the debt. However, LBO funds may also invest in distressed companies or turnarounds.

Which of the Following Funds Make Investments in Established Businesses