When an Outside Group Acquires a Firm,primarily Through the Use

question 100

Multiple Choice

When an outside group acquires a firm,primarily through the use of borrowed funds,the acquisition is known as a:

• A) management buyout.
• B) tender offer.
• C) leveraged buyout.
• D) successful proxy fight.

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Definitions:

Fixed Assets

Long-term tangible assets used in the operation of a business that are not expected to be converted into cash in the upcoming year.

Usefulness

The quality of being practical and beneficial, especially in decision-making or assessing value.

Prepaid Expense

Expenses paid in advance for goods or services, which are recorded as an asset until the service is consumed or the good is used.

Insurance Policy

A contract between the insurer and the policyholder specifying the terms under which the insurer agrees to compensate the policyholder for loss.