Which of the Following Statements Best Describes a Bootstrap Acquisition

question 63

Multiple Choice

Which of the following statements best describes a bootstrap acquisition?

• A) The shareholder sells his stock in exchange for cash and debt.
• B) The shareholder sells part of his or her stock to a purchaser and then the corporation redeems the original shareholder's remaining stock.
• C) The shareholder exchanges his stock for stock of a different corporation.
• D) none of the above

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Definitions:

Managerial Subsystem

A component of an organization that focuses on administrative and decision-making functions, essential for directing the organization towards its goals.

Traditional Organizational Theory

An approach to organizational management that emphasizes hierarchy, fixed duties, and a top-down flow of information and orders.

Delegated Authority

The transfer of authority from one individual to another, enabling the latter to make decisions within certain boundaries.

Boundary-Spanning Job

A boundary-spanning job involves roles that require an individual to maintain relationships, communication, and coordination between their organization and its external environment or different internal groups.