The Management of Corporation a Forms Corporation B in Which

question 69

Multiple Choice

The management of Corporation A forms Corporation B in which management owns some stock and institutional investors own the rest.Corporation B issues bonds to institutional investors to raise cash, with which it purchases the assets or stock of Corporation A.The assets of Corporation A 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.

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Definitions:

Circadian Rhythm

The internal biological clock that regulates the sleep-wake cycle and repeats roughly every 24 hours.

Biological Cycle

A natural, recurring physiological or behavior change in living organisms that is influenced by environmental factors or internal mechanisms.

Sleep Pattern

The natural or habitual timing, quality, and quantity of sleep in an individual or across populations.

Myoclonic Jerks

Involuntary, quick muscle spasms often occurring as people are falling asleep.