An investor group borrowed the money necessary to buy all of the stock of a company.Which of the following terms best describes this transaction?
A) Merger
B) Consolidation
C) Leveraged buyout
D) Tender offer
E) Joint venture

Question

Quizplus · Accepted Answer

A leveraged buyout (LBO) is a financial transaction in which a company is purchased using a significant amount of borrowed money, often with the assets of the company being used as collateral for the loans. This allows the investors to purchase a controlling interest in the company without having to put up a large amount of their own money.

An Investor Group Borrowed the Money Necessary to Buy All