In ________,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.

Question

Quizplus · Accepted Answer

The description given in the question matches the definition of a leveraged buyout, where money is borrowed to purchase a company, and the debt is repaid using the company's profits. The other options - A) a leveraged sellout, C) owner financing, and D) 100% bank financing - do not fit the given description as closely.

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