Which of the following statements best describes a bootstrap acquisition?
A)The shareholder sells part of his or her stock to a purchaser and then the corporation redeems the original shareholder's remaining stock.
B)The shareholder sells his stock in exchange for cash and debt.
C)The shareholder exchanges his stock for stock of a different corporation.
D)none of the above

Question

Quizplus · Accepted Answer

In a bootstrap acquisition, the purchaser buys part of the shareholder's stock, and then the corporation redeems the remaining stock from the original shareholder.

Which of the Following Statements Best Describes a Bootstrap Acquisition