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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This action by management is a classic leveraged buyout (LBO) in which a company (in this case, Corporation B) acquires another company (Corporation A) primarily with borrowed funds using the assets of the acquired company as collateral.

The Management of Corporation a Forms Corporation B