The management of Corporation A forms Corporation B. Corporation B issues bonds to institutional investors to raise cash, with which it purchases the assets or stock of Corporation A. The assets of Corporation A are used as security for the bonds issued by Corporation B. This action by management is best described as a:

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A leveraged buyout (LBO) involves using borrowed funds, often through issuing bonds, to acquire a company, with the acquired company's assets serving as collateral for the debt.

The Management of Corporation a Forms Corporation B