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In ______ acquisition, a public company is taken over by a private company. - Entrepreneurship

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Question

In ______ acquisition, a public company is taken over by a private company.

Options

  • Friendly

  • Reverse

  • Backflip

  • Hostile

MCQ
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Solution

In Backflip acquisition, a public company is taken over by a private company.

Explanation:

In a backflip acquisition, a public company is taken over by a private company, and the public company becomes a subsidiary of the private company.
This is a special type of acquisition structure.

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2024-2025 (March) Set 4
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