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Management buyout (MBO) is best described as:
AAcquisition of the company / division by its existing management
BAcquisition of the firm by an outside private-equity sponsor only
CA friendly merger with a strategic competitor
DCompulsory delisting from the exchange
Answer & Solution
Correct answer: A. Acquisition of the company / division by its existing management
1. Identify what the question asks: this concept maps to mbo (§9.2).
2. Apply the framework or formula relevant to the topic.
3. Eliminate distractors and arrive at the correct option (A).
_Source: ICAI BoS CA Final Paper 2, Ch 14 "Mergers Acquisitions and Corporate Restructuring"_
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