Deal of The Day! Hurry Up, Grab the Special Discount - Save 25% - Ends In 00:00:00 Coupon code: SAVE25
Welcome to Pass4Success

- Free Preparation Discussions
Mail Us support@pass4success.com
Location US
Mob_nav_barsMENU

CIMA Exam CIMAPRA19-F03-1 Topic 7 Question 98 Discussion

Actual exam question for CIMA's CIMAPRA19-F03-1 exam
Question #: 98
Topic #: 7
[All CIMAPRA19-F03-1 Questions]

A company is considering a divestment via either a management buyout (MBO) or sale to a private equity purchaser. Which of the following is an argument in favour of the MBO from the viewpoint of the original company?

Show Suggested Answer Hide Answer
Suggested Answer: A

by Yong at Sep 15, 2024, 09:29 AM

Limited Time Offer

25%

Off

Get Premium CIMAPRA19-F03-1 Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel
Ernestine
6 months ago
Haha, B is just a random buzzword thrown in there to distract us. Nice try, but I'm not falling for that one!
upvoted 0 times
...
Eliseo
6 months ago
Hmm, I'm going to have to go with A. Keeping the management team motivated and engaged is key after a divestment.
upvoted 0 times
Virgie
5 months ago
That's a good point. Maintaining a good relationship with the management team can definitely benefit the original company in the long run.
upvoted 0 times
...
Celestina
5 months ago
C) Improved relationships with management buyout team in the event of a sale to the private equity purchaser.
upvoted 0 times
...
Leila
6 months ago
A) Better co-operation post divestment.
upvoted 0 times
...
...
Camellia
6 months ago
C is just plain silly. Why would the original company care about their relationship with the MBO team if they're selling to a private equity firm?
upvoted 0 times
...
Kaycee
6 months ago
B is a bit out of left field. Big data has nothing to do with whether the company should choose an MBO or private equity sale.
upvoted 0 times
...
Shad
6 months ago
D seems like the best option to me. The synergistic benefits of the MBO should result in a higher price for the original company.
upvoted 0 times
Sheridan
5 months ago
Lai: It's important to consider all the potential benefits before making a decision.
upvoted 0 times
...
Lai
5 months ago
User 2: Definitely, higher price due to synergistic benefits is a strong argument in favor of the MBO.
upvoted 0 times
...
Stephaine
6 months ago
I agree, D does seem like the best option. The synergistic benefits could lead to a higher price.
upvoted 0 times
...
...
Tegan
6 months ago
But what about option A? Better co-operation post divestment could also be beneficial for the original company.
upvoted 0 times
...
Ivette
7 months ago
I think the correct answer is A. The management team will likely be more invested in the success of the company post-divestment if they've bought it out themselves.
upvoted 0 times
Rosio
5 months ago
That's true, maintaining good relationships can be beneficial in the long run.
upvoted 0 times
...
Thaddeus
5 months ago
C) Improved relationships with management buyout team in the event of a sale to the private equity purchaser.
upvoted 0 times
...
Remedios
5 months ago
I agree, the management team will have a vested interest in the company's success.
upvoted 0 times
...
Glendora
5 months ago
A) Better co-operation post divestment.
upvoted 0 times
...
...
Felicidad
7 months ago
I agree with Yuki, higher price due to synergistic benefits is definitely a key advantage.
upvoted 0 times
...
Yuki
7 months ago
I think option D is a strong argument for the MBO.
upvoted 0 times
...

Save Cancel