A ________ occurs when someone purchases a company's publicly-traded stock primarily by using borrowed funds,sometimes using the target company's assets as collateral for these loans.
A) leveraged buyout
B) hostile takeover
C) forced joint venture
D) consolidation
E) strategic alliance

Question

Quizplus · Accepted Answer

A)A leveraged buyout (LBO)occurs when someone purchases a company's publicly-traded stock primarily by using borrowed funds, sometimes using the target company's assets as collateral for these loans.
B)A leveraged buyout (LBO)occurs when someone purchases a company's publicly-traded stock primarily by using borrowed funds, sometimes using the target company's assets as collateral for these loans.
C)A leveraged buyout (LBO)occurs when someone purchases a company's publicly-traded stock primarily by using borrowed funds, sometimes using the target company's assets as collateral for these loans.
D)A leveraged buyout (LBO)occurs when someone purchases a company's publicly-traded stock primarily by using borrowed funds, sometimes using the target company's assets as collateral for these loans.
E)A leveraged buyout (LBO)occurs when someone purchases a company's publicly-traded stock primarily by using borrowed funds, sometimes using the target company's assets as collateral for these loans.

A ________ Occurs When Someone Purchases a Company's Publicly-Traded Stock