If a firm's management leads a leveraged buyout transaction,then the transaction is called a(an):
A)IPO.
B)MBO.
C)MACRS.
D)SEO.

Question

Quizplus · Accepted Answer

MBO stands for Management Buyout, where the firm's management leads the buyout transaction. A leveraged buyout (LBO) involves using a significant amount of debt to finance the acquisition, and if the management is leading the transaction, it is called an MBO. IPO stands for Initial Public Offering, MACRS (Modified Accelerated Cost Recovery System) is a tax depreciation method, and SEO (Seasoned Equity Offering) is when a company offers new shares of stock to the public after its initial public offering.

If a Firm's Management Leads a Leveraged Buyout Transaction,then the Transaction