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:

Lessor

The entity in a lease agreement that possesses the asset and allows the lessee to utilize the asset in return for payments of rent.

Break-Even Lease Payment

The break-even lease payment is the lease payment at which the cost of leasing equals the cost of owning, neither gaining nor losing financially over the term of the lease.

CCA Class

In tax terminology, specifically for Canadian taxation, a system categorizing business assets for the purpose of depreciation calculation.

Turret Lathe

A type of lathe that allows multiple machining operations, like drilling and cutting, to be performed sequentially on a workpiece without repositioning it.