Question

A popular financial strategy in which a company is acquired in a transaction financed largely by debt and eventually paid with money generated from the acquired company's operations or by sale of its assets is:_________
A) illegal in most countries.
B) a good way to build a core competency.
C) an application of the capital asset pricing model.
D) the leveraged buyout.
E) an example of internal financing.

Answer 1

Answer:

Option D (the leveraged buyout) is the correct answer.

Explanation:

• This method includes an organizational plan's financial elements such as sales and expenditures, production planning and scheduling, investment analysis, as well as accounts receivable.
• An organization generally progresses an investment plan shortly after that the perspective, as well as priorities, have indeed been established.

The other given choices are not related to the given instance. So that the above would be the appropriate choice.