When an outside group acquires a firm,primarily through the use of borrowed funds,the acquisition is known as a:
A) management buyout.
B) tender offer.
C) leveraged buyout.
D) successful proxy fight.

Question

Quizplus · Accepted Answer

A leveraged buyout, or LBO, is a type of acquisition where an outside group (usually a private equity firm) acquires a company primarily through the use of borrowed funds, often with the intention of restructuring and/or selling the company for a profit. In an LBO, the assets of the acquired company are often used as collateral for the debt used to finance the acquisition, making it a high-risk strategy.

When an Outside Group Acquires a Firm,primarily Through the Use