Hidden Valley Communications,Inc. ,located in a remote area of Utah,made a special device that was used in 4^th generation cell phones.After three years of local operations,the company that employed 4,000 people was planning to close its Utah operation and move the assembly offshore.Under the direction of a financial services company that financed the deal,the employees agreed to become owners of the company and continue to operate the business.The business concept that describes this arrangement is: A) IPO (initial public offering). B) LBO (leveraged buyout). C) EPO (equity public offering). D) HM (horizontal merger).

Question

Quizplus · Accepted Answer

The business concept that describes this arrangement is a leveraged buyout (LBO) where the employees agree to become owners of the company and continue to operate the business after the original owners decide to close it down.