The Type of Acquisition in Which the Acquiring Entity Is

question 28

Multiple Choice

The type of acquisition in which the acquiring entity is financing most of the buyout with debt is called a

• A)leveraged buyout.
• B)reverse merger.
• C)tender offer.
• D)hostile takeover.

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Definitions:

Stamp Act

A 1765 British law that imposed a tax on the colonies for stamped paper used in official documents, widely unpopular and seen as a direct taxation without colonial representation.

Tax

Mandatory financial charges imposed by a government on individuals, corporations, or other entities to fund public expenditure.

Commerce

The activity of buying and selling, especially on a large scale, involving transportation and exchange of goods and services.

Commodities

Basic goods used in commerce that are interchangeable with other goods of the same type.