Match the Term with Its Definition

question 21

Multiple Choice

Match the term with its definition.
-Taxation of income that occurs twice-first as corporate earnings and then as stockholder dividends

• A)build-up LBO
• B)business broker
• C)bust-up LBO
• D)double taxation
• E)employee stock ownership plan (ESOP)
• F)harvesting (exiting)
• G)initial public offering (IPO)
• H)leveraged buyout (LBO)
• I)management buyout (MBO)
• J)opportunity cost of funds
• K)private equity recapitalization
• L)seller financing

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Definitions:

Adjustment

The process of modifying something to achieve a desired outcome, often used in the context of economic policies, mechanisms, or personal changes.

Equilibrium Price

The price at which the quantity of a product offered is equal to the quantity of the product in demand.

Government

The organization, or system of governance, that exercises authority and performs the functions of governing a political state or community.

Market Price

The present cost at which a service or asset is available for purchase or sale.