A Popular Financial Strategy in Which a Company Is Acquired

question 55

Multiple Choice

A popular financial strategy in which a company is acquired in a transaction financed largely by debt ∙ eventually paid off with money generated from the acquired company's operations or by sale of its assets is

• A)illegal in most countries.
• B)a good way to build a core competency.
• C)an application of the capital asset pricing model.
• D)the leveraged buyout.
• E)an example of internal financing.

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Definitions:

Tenants in Property

Individuals or entities who hold the right to occupy land or structures rented from a landlord under a lease.

Tenants in Common

Tenants in common refers to a form of co-ownership where each owner has a distinct, undivided interest in the property, which may be unequal in size and may be transferred independently.

Offshore Partnerships

Financial or business arrangements made in jurisdictions with favorable tax laws to maximize profit and minimize tax liability.

Technological Competence

Technological competence involves the knowledge, skills, and abilities to effectively use technological tools and processes in a specific domain or activity.