The Intent of the Owners in a Whole-Firm Leveraged Buyout

question 72

True/False

The intent of the owners in a whole-firm leveraged buyout may be to increase the efficiency of the bought-out firm and resell it in five to eight years.This tends to make the managers of the bought-out firm high risk takers, since they will probably not survive the resale and thus have little to lose.

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Subchapter S

A section of the Internal Revenue Code allowing corporations with 100 shareholders or less to be taxed as a partnership, avoiding double taxation.

Internal Revenue Code

The comprehensive set of tax laws and regulations in the United States governing federal tax obligations.