n NISM Certifications
X NISM Series X
Medium

What is the primary objective of deal negotiations for an AIF's proposed investment in an investee company?

Practice question from NISM Series XIX A- Alternative Investments Funds (AIF) Distributors Mock Test 5 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    To seek approval from all AIF investors

  2. B

    To ensure acceptability to the Board of Trustees

  3. C

    To prevent the investee company from declining the offer

  4. To arrive at mutual offer and acceptance

    Correct answer

Why this is the answer

Negotiations aim to reach an agreement on investment terms that reflect the strategic and financial interests of both the AIF and the investee company.

Test yourself for real

Take a full NISM Series X mock test.

Same duration, same weighting, same difficulty distribution as the real exam — with explanations on every question.