The Management of Alkort Corporation Forms Bortalk Corporation in Which

question 38

Multiple Choice

The management of Alkort Corporation forms Bortalk Corporation in which management owns some stock and institutional investors own the rest.Bortalk Corporationissues bonds to institutional investors to raise cash,with which it purchases the assets or stock of Alkort Corporation.The assets of Alkort Corporation are used as security for the bonds.This action by management is best described as a:

• A) leveraged buyout.
• B) cash-out combination.
• C) short-form merger.
• D) compulsory share exchange.

---

Definitions:

Cardiorespiratory System

The body system consisting of the heart, blood vessels, and lungs, responsible for transporting oxygen to tissues.

Nervous System

A network of cells and fibers that transmits nerve impulses between parts of the body.

Fat Burned

The process of using body fat as energy during metabolism, often emphasized in exercise and weight loss contexts to denote the utilization of fat stores for fuel.

Maximum Heart Rate

The highest number of beats per minute a heart can achieve during maximum physical exertion, varying by age.