The Management of Corporation a Forms Corporation B

question 78

Multiple Choice

The management of Corporation A forms Corporation B.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 issued by Corporation B.This action by management is best described as a:

• A) cash-out combination.
• B) leveraged buyout.
• C) compulsory share exchange.
• D) short-form merger.

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Definitions:

Enzyme

a protein that catalyzes chemical reactions within living organisms, speeding up the rate at which these reactions occur without being consumed in the process.

Photosynthesis

A process by which green plants and some other organisms use sunlight to synthesize foods from carbon dioxide and water. Photosynthesis in plants generally involves the green pigment chlorophyll and generates oxygen as a byproduct.

Equation

A mathematical statement that asserts the equality of two expressions, usually represented by the symbol "=".

Worms

Malicious software programs that replicate themselves in order to spread to other computers, often causing harm by exploiting vulnerabilities.