In a(n) ____________, the managers of the firm purchase the shares outstanding in the open market and take the firm private.
A) Proxy contest.
B) Tender offer.
C) Vertical acquisition.
D) Management buyout.
E) Asset acquisition.

Question

Quizplus · Accepted Answer

A management buyout (MBO) occurs when a company's managers purchase the assets and operations of the business they manage, taking it private. This involves buying out the company's shareholders.

In A(n) ____________, the Managers of the Firm Purchase the Shares