The main characteristics of leveraged restructurings are:
I.high debt;
II.management incentives;
III.private ownership
A)I only
B)I and II only
C)I and III only
D)I,II,and III

Question

Quizplus · Accepted Answer

Leveraged restructurings involve taking on high levels of debt to fund the restructuring process. Management incentives are often put in place to motivate the management team to successfully execute the restructuring plan. While private ownership is common in leveraged restructurings, it is not a defining characteristic, as some leveraged restructurings may involve publicly-owned companies. Therefore, the correct choices are I and II only.

The Main Characteristics of Leveraged Restructurings Are