What is private equity?

"A type of investment focused on publicly traded companies" "An investment strategy primarily for low-income individuals" "A type of investment where wealthy individuals invest in private companies not listed on the stock exchange" "A risk-free investment with guaranteed returns"

What is a key characteristic of private equity investments?

"They offer lower returns than traditional investments" "They require minimal upfront investment" "They are short-term commitments" "They offer higher returns than traditional investments but require a large upfront investment and a longer time commitment"

Which type of private equity investor focuses on early-stage companies with high growth potential?

"Buyout Funds" "Growth Capital Investors" "Venture Capitalists" "Specialized Funds"

What is the primary goal of private equity investments?

"To gain control of publicly traded companies" "To provide immediate capital to financially distressed companies or those needing funds for expansion or regular operations" "To invest in companies with guaranteed low returns" "To solely focus on short-term profits"

How do private equity investors typically exit their investments?

"By donating their shares to charity" "By holding onto the investment indefinitely" "By selling their stake or facilitating an initial public offering (IPO)" "By converting their shares into government bonds"

What was a major challenge for private equity in India in the early 2000s?

"An abundance of private companies" "Excessive government regulations" "A scarcity of private companies compared to other emerging markets" "Lack of interest from global investors"

How has the performance of private equity-backed companies in India compared to their public counterparts?

"They have performed worse in terms of revenue and profit growth" "They have shown similar performance in terms of revenue and profit growth" "They have surpassed public companies in revenue and profit growth" "Data on their performance is unavailable"

What is one way private equity firms contribute to the Indian economy?

"By investing solely in government-run enterprises" "By discouraging entrepreneurship" "By hindering job creation" "By fueling entrepreneurship, job creation, and economic growth"