Leveraged buyouts are also referred to as
A)leveraged bargains.
B)management buyouts.
C)management bargains.
D)coordinated buyouts.
E)debt buyouts.

Question

Quizplus · Accepted Answer

Leveraged buyouts (LBOs) are a type of acquisition in which a company is purchased using a significant amount of borrowed money, with the assets of the company being used as collateral for the loans. LBOs are often initiated by management, who may team up with a private equity firm or other investors to acquire the company. Therefore, the correct answer is B, management buyouts. The other answer choices are not accurate or commonly used terms to describe leveraged buyouts.

Leveraged Buyouts Are Also Referred to as