alleryStart learning →In an MBO, what conflict of interest do managers face?
AThey want high tax but low profit
BThey want a low price, owners high
CThey want to sell but cannot
DThey want debt but lack a bank
Answer & Solution
Correct answer: B. They want a low price, owners high
Managers personally gain from a low purchase price, while their employers, the owners, want a high one.
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