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Cross-border M&A introduces incremental risks not seen in domestic deals primarily because of:
ASovereign / political and FX-translation risk on cash flows
BStricter domestic anti-trust review than cross-border
CLower premium typically paid in cross-border deals
DMandatory all-cash structure under SEBI
Answer & Solution
Correct answer: A. Sovereign / political and FX-translation risk on cash flows
1. Identify what the question asks: this concept maps to crossbordermarisks (§14).
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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