Explanation : Firms with (1) large amounts of undervalued assets which can be sold to
reduce debt; and (2) that generate high levels of cash flows which can be
used to make interest and principal payments on the debt are most likely
candidates for management buyout transactions.
Explanation : Options A and C are reasons for investing in domestic companies. Option B
is not a reason because restrictions on capital flows makes it harder (not
easier) for local companies to raise capital.