A Leveraged Buyout Refers to

question 56

Multiple Choice

A leveraged buyout refers to

• A)a firm restructuring itself by selling off unrelated units of the company's portfolio.
• B)a firm pursuing its core competencies by seeking to build a top management team that comes from a similar background.
• C)a restructuring action whereby a party buys all of the assets of a business, financed largely with debt, and takes the firm private.
• D)an action where the management of the firm and/or an external party buy all of the assets of a business financed largely with equity.

---

Definitions:

General Adaptation Syndrome

A three-stage response (alarm, resistance, exhaustion) that the body goes through in reaction to prolonged stress.

Distress

Emotional suffering or pain often caused by stress, anxiety, or trauma, which can negatively impact an individual's mental and physical health.

Excessive

Going beyond what is normal, usual, or necessary; characterized by overabundance.

Debilitating

Causing weakness or an inability to function properly.