In a ________,managers or employees,or both,borrow money from a financial institution and pay the owner the total agreed-upon price at closing;then they use the cash generated from the company's operations to pay off the debt.

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In a leverage buyout, managers or employees borrow money from a financial institution to buy out the company, and pay the agreed-upon price at closing. They then use the cash generated from the company's operations to pay off the debt. This allows the managers or employees to take over the company without having to come up with the full purchase price upfront, and also provides them with an incentive to generate cash flow to pay off the debt. The other choices - A) leverage sellouts, C) owner financing, and D) 100% bank financing - do not accurately describe this type of transaction.

In a ________,Managers or Employees,or Both,borrow Money from a Financial