cartera Posted February 2, 2009 Share Posted February 2, 2009 In past decades, private equity investors used to compete for exclusive participation in investments. Now, in response to both the growing scale of investments and increased competition to participate, private equity funds often form "clubs" or syndicates and jointly take positions in large investments. This approach allows them to spread some of the risk and also gain access to other investments and opportunities. Which of the following statements by a private equity investor best defines the changing attitude described in the argument above? A "We would rather beat our competition by working with them in order to find out their strengths and weaknesses." B "In order to keep up with our competition, we should stop investing small and only invest in very large opportunities." C "In order to make sure that we can participate in certain investments, we should expect to cooperate with our competition on occasion." D "To avoid taking any risks, it is necessary to stop competing with our former competitors." E "In response to changing market conditions, we should participate only in investments that allow us to take better positions than our competitors." 1 Quote Link to comment Share on other sites More sharing options...
Raj_Gmat Posted February 2, 2009 Share Posted February 2, 2009 Imo C 1 Quote Link to comment Share on other sites More sharing options...
cambridgedove Posted February 2, 2009 Share Posted February 2, 2009 What a classic one --> A "We would rather beat our competition by working with them in order to find out their strengths and weaknesses." Quote Link to comment Share on other sites More sharing options...
rajatmeh Posted February 2, 2009 Share Posted February 2, 2009 Would go with © but the only hesitation is the word "competition" instead of "competitors" C "In order to make sure that we can participate in certain investments, we should expect to cooperate with our competition on occasion." Quote Link to comment Share on other sites More sharing options...
vikram_k51 Posted February 3, 2009 Share Posted February 3, 2009 Private Equity In past decades, private equity investors used to compete for exclusive participation in investments. Now, in response to both the growing scale of investments and increased competition to participate, private equity funds often form "clubs" or syndicates and jointly take positions in large investments. This approach allows them to spread some of the risk and also gain access to other investments and opportunities. Which of the following statements by a private equity investor best defines the changing attitude described in the argument above? A "We would rather beat our competition by working with them in order to find out their strengths and weaknesses." ------>No B "In order to keep up with our competition, we should stop investing small and only invest in very large opportunities." --->No C "In order to make sure that we can participate in certain investments, we should expect to cooperate with our competition on occasion." --->keep it D "To avoid taking any risks, it is necessary to stop competing with our former competitors." ---->No E "In response to changing market conditions, we should participate only in investments that allow us to take better positions than our competitors."--->No Will go with C Quote Link to comment Share on other sites More sharing options...
bearbull Posted February 3, 2009 Share Posted February 3, 2009 In past decades, private equity investors used to compete for exclusive participation in investments. Now, in response to both the growing scale of investments and increased competition to participate, private equity funds often form "clubs" or syndicates and jointly take positions in large investments. This approach allows them to spread some of the risk and also gain access to other investments and opportunities. Which of the following statements by a private equity investor best defines the changing attitude described in the argument above? A "We would rather beat our competition by working with them in order to find out their strengths and weaknesses." THIS WOULD MEAN SOME ONE ELSE WOULD KNOW THEIR STRENGTHS AND WEAKNESS TOO AND THIS CAN BACKFIRE .( BEAT THEM IN THEIR OWN GAME) B "In order to keep up with our competition, we should stop investing small and only invest in very large opportunities." THE ARGUMENT TALKS ABOUT SMALL INVESTMENTS AND NOT THAT SMALL SHOULD BE IGNORED PASSAGE : often form "clubs" or syndicates and jointly take positions in large investments. C "In order to make sure that we can participate in certain investments, we should expect to cooperate with our competition on occasion." D "To avoid taking any risks, it is necessary to stop competing with our former competitors." THEY SHARE RISK . NOT ERADICATE RISKS FROM PASSAGE : spread some of the risk E "In response to changing market conditions, we should participate only in investments that allow us to take better positions than our competitors." ARGUMENT MENTIONS OFTEN AND NOT ONLY THAT TAKE US TO A BETTER POSITION FROM PASSAGE : often form "clubs" or syndicates IMO C Quote Link to comment Share on other sites More sharing options...
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