ESOPs are simply another version of LBOs,used to buy companies from their owners.

Name: ESOPs are simply another version of LBOs,used to buy companies from their owners.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

ESOPs, or Employee Stock Ownership Plans, are not the same as LBOs, or Leveraged Buyouts. ESOPs involve the company's employees gradually acquiring a stake in the company through a trust, while LBOs involve outside investors borrowing money to buy a company and using the company's assets as collateral for the loan.

ESOPs Are Simply Another Version of LBOs,used to Buy Companies