Which of the Following Best Describes a "Leveraged Buyout

question 64

Multiple Choice

Which of the following best describes a "leveraged buyout".

• A) The use of borrowed funds to take a company private.
• B) Buying a majority share in a small, relatively risky company.
• C) The private debt-financing of company with a known history.
• D) The purchase of "on going concerns" that is family owned and operated.
• E) Debt financing of a start-up firm with no assets to provide as collateral.

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Definitions:

Null Hypothesis

A statement made for statistical testing that assumes no effect or no difference between groups or variables being studied.

Statistical Power

The probability that a test will correctly reject a false null hypothesis; a measure of a test's ability to detect an effect, if there is one.

Type II Error

The statistical mistake of failing to reject a false null hypothesis, also known as a false negative.

Sample Size

The number of observations or items selected from a larger population for the purpose of statistical analysis.