Leveraged Buyout Firms Use the Unencumbered Assets and Operating Cash

question 44

True/False

Leveraged buyout firms use the unencumbered assets and operating cash flow of the target firm to finance the transaction.

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Definitions:

Limits

In engineering and manufacturing, limits refer to the maximum and minimum dimensions a part can have to be considered acceptable.

Allowance

The intentional difference in dimensions between mating parts to ensure a proper fit.

Basic Hole System

A hole basis system of fits in manufacturing where the hole is the component with the basic size, and the shafts are adjusted for different fits.

Basic Size

The theoretical exact size from which the limits of size are determined in dimensioning and tolerancing practices.