Transactions where public shareholders are bought out and the firm refers to private status are referred to as:
A) tender offers
B) mergers
C) leveraged buyouts
D) divestitures

Question

Quizplus · Accepted Answer

Transactions where public shareholders are bought out and the firm refers to private status are referred to as leveraged buyouts (LBOs). Tender offers involve a buyer offering to purchase shares directly from shareholders, mergers involve two companies combining to form a new entity, and divestitures involve a company selling off a division or subsidiary.

Transactions Where Public Shareholders Are Bought Out and the Firm