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CIMA Exam CIMAPRA19-F02-1 Topic 1 Question 99 Discussion

Actual exam question for CIMA's CIMAPRA19-F02-1 exam
Question #: 99
Topic #: 1
[All CIMAPRA19-F02-1 Questions]

Company A are approached by a wealthy and internationally famous investor shortly before the launch date of their IPO. He tells them that the company do not need to incur all of the cost and risk of an IPO, as he will give them S55 million for 65% equity in the company.

Which of the following statements are also true of the offer? Select ALL that apply.

Show Suggested Answer Hide Answer
Suggested Answer: C

Contribute your Thoughts:

Rex
16 days ago
This investor sounds like they're trying to pull a fast one on the company. $55 million for 65% of the company? They must have a crystal ball to know the company's future value!
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Polly
17 days ago
I bet the investor is already planning their exit strategy. They'll likely want to sell their shares in the company at some point for a nice profit.
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Glenna
19 days ago
The investor will definitely want to have a say in the management of the company. This is a significant ownership stake, so they'll probably want to be involved in major decisions.
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Talia
8 days ago
A) This offer is from an angel investor
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Delfina
26 days ago
Hmm, I'm not sure if the investor is an angel investor. The amount of investment is quite high for an angel investor. I'd say this is more likely a venture capitalist or a private equity firm.
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Otis
1 days ago
C) The investor will probably want to manage the company
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Kristofer
19 days ago
B) The offer may ultimately require the majority stakeholder to sell his shares in the company
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Mi
20 days ago
A) This offer is from an angel investor
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Catherin
1 months ago
This seems like a great opportunity for the company to avoid the hassle and risk of an IPO. The investor's offer of $55 million for a 65% stake is quite generous.
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Jerilyn
19 days ago
I wonder if the investor will want to have a say in how the company is run.
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Rueben
20 days ago
That's a lot of money for a majority stake in the company.
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Felix
2 months ago
C) The investor will probably want to manage the company
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Lili
2 months ago
B) The offer may ultimately require the majority stakeholder to sell his shares in the company
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Felix
2 months ago
A) This offer is from an angel investor
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