A leveraged buyout will often result in a short-term outcome of __________, which, in turn, leads to a long-term outcome of __________.
A) high debt costs; higher risk
B) high debt costs; higher performance
C) high debt costs; lower performance
D) Emphasis on strategic controls; higher risk

Question

Quizplus · Accepted Answer

Leveraged buyouts involve taking on a large amount of debt to acquire a company, which can lead to high debt costs in the short term. This can put pressure on the company to improve its performance in order to meet its debt obligations, which can lead to higher performance in the long term.

A Leveraged Buyout Will Often Result in a Short-Term Outcome