The current officers of MTC have decided to form a private investment group for the sole purpose of purchasing MTC. These indivi

Question

4 years ago

10

The current officers of MTC have decided to form a private investment group for the sole purpose of purchasing MTC. These indivi

duals will borrow 90 percent of their offer price. The purchase of this firm is referred to as a: A) conglomeration. B) proxy contest. C) merger. D) management buyout. E) consolidation..

Business

1 answer:

Marrrta [24] · Answer 1 · 2022-01-08T18:52:51+03:00

Answer: management buyout.

Explanation:

A leveraged buyout or in this scenario a management buyout is a situation that occurs when a company is being acquirred by another company when most of the money used in the acquisition was borrowed.

This can be seen in the above scenario where we are told that 90 percent of the offer price was borrowed.