The Acquisition of a Company in Which the Buyer Borrows

question 28

Multiple Choice

The acquisition of a company in which the buyer borrows a large amount of the purchase price, using the purchased assets as collateral for a large portion of the borrowings, is known as a ____.

• A) pooling of interests
• B) leveraged buyout
• C) conglomerate merger
• D) tender offer

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Definitions:

Internal

Existing or happening within an organization, system, or process, rather than involving external factors.

Financial Results

Refers to the numerical outcomes derived from a company's operations and activities, typically reported quarterly or annually.

Senior Officers

High-ranking executives in a company or organization, typically responsible for major decisions and overall management.

Interested Parties

Individuals or groups who have a stake in or could be affected by a decision or action.