Question

A leveraged buyout refers to a(n): a. restructuring action whereby a party buys all of the assets of a business, financed largely with debt, and takes the firm private. b. firm restructuring itself by selling off unrelated units of the company's portfolio. c. firm pursuing its core competencies by seeking to build a top management team that comes from a similar background. d. action where the management of the firm and/or an external party buys all of the assets of a business financed largely with equity.

Answer 1

Answer:

a. restructuring action whereby a party buys all of the assets of a business, financed largely with debt, and takes the firm private

Explanation:

In a leveraged buyout, a firm is acquired using debt. The assets of the company are usually used as a collateral for the loans used a leverage buyout.

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