The workers at Scrappy's Metal Fabrication,Inc.,have learned that the firm is about to close down.They have devised a plan to use debt financing to buy the company's stock from current shareholders with the intention of keeping the company in business,thus saving their jobs.This strategy is called a leveraged buyout.

Question

Quizplus · Accepted Answer

The given statement correctly describes a leveraged buyout, in which the acquiring group (in this case, the workers) uses debt financing to purchase a company's stock from its current shareholders, with the goal of keeping the company in business and controlling its operations.

The Workers at Scrappy's Metal Fabrication,Inc