A Popular Financial Strategy in Which a Company Is Acquired

question 51

Multiple Choice

A popular financial strategy in which a company is acquired in a transaction financed largely by debt and eventually paid 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.

---

Definitions:

Acetylcholine

A neurotransmitter in the central and the peripheral nervous systems that plays a key role in the function of muscle action, heart rate, memory, and learning.

Botulism

A rare but serious illness caused by botulinum toxin, which can cause paralysis and is often linked to improperly prepared food.

Myelin Sheath

A fatty layer that encases and insulates the axons of neurons, facilitating faster transmission of electrical signals.

Electrical Current

The flow of electric charge through a conductor, typically measured in amperes.