Question : Case Study 25:
MNO Enterprises is a leading company in the consumer goods sector planning to expand its operations globally.
Question :
MNO Enterprises is looking to raise funds for expanding its global operations. What type of market activity would be relevant for this objective?
Option 1: IPO (Initial Public Offering)
Option 2: Currency swap
Option 3: Mergers and acquisitions
Option 4: Commercial paper issuance
Correct Answer:
IPO (Initial Public Offering)
Solution : The correct answer is (a) IPO (Initial Public Offering)
An IPO is a process through which a private company goes public by offering its shares to the public for the first time. This allows the company to raise significant funds by selling ownership stakes (equity) to investors, which can then be used to fund expansion plans and other business initiatives, including global expansion. Going public through an IPO is a common approach for companies seeking to raise substantial capital for growth and expansion.
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