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SPAC (Special Purpose Acquisition Company) raises capital initially to:
AAcquire a specific named target identified at IPO (within the standard regulatory framework)
BIssue convertible debt to anchor investors only
CFund a perpetual fund-of-funds investment vehicle
DAcquire one or more not-yet-identified target companies within a fixed window
Answer & Solution
Correct answer: D. Acquire one or more not-yet-identified target companies within a fixed window
1. Identify what the question asks: this concept maps to spac (§15).
2. Apply the framework or formula relevant to the topic.
3. Eliminate distractors and arrive at the correct option (D).
_Source: ICAI BoS CA Final Paper 2, Ch 14 "Mergers Acquisitions and Corporate Restructuring"_
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