There was a surge in "leveraged buyouts" in the 1980s. This means:
A)That buyers used legal action and other means to "leverage out" poor CEOs
B)That acquirers bought firms, and let it be known in advance that the previous management would be "leveraged out"
C)That the acquirer used the future value of the acquisition as security to borrow the money to buy the company
D)All of the above

Question

Quizplus · Accepted Answer

Leveraged buyouts in the 1980s refers to the acquisition of a company using borrowed money, with the company being used as security for the loan. This allowed buyers to use the future value of the acquisition to finance the purchase. Options A and B are not correct as they do not accurately describe a leveraged buyout.

There Was a Surge in "Leveraged Buyouts" in the 1980s