Which of the Following Statements Best Describes a Bootstrap Acquisition

question 11

Multiple Choice

Which of the following statements best describes a bootstrap acquisition?

• A)The shareholder sells part of his or her stock to a purchaser and then the corporation redeems the original shareholder's remaining stock.
• B)The shareholder sells his stock in exchange for cash and debt.
• C)The shareholder exchanges his stock for stock of a different corporation.
• D)none of the above

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Definitions:

Economic Principle

A widely accepted generalization about the economic behavior of individuals or institutions.

Cause and Effect

A relationship between events where one or more are the result of the other(s), a fundamental concept in establishing correlations in various fields.

Rational Self-interest

The principle that individuals tend to make decisions that result in the most personal benefit.

Satisfying Wants

Fulfilling the desires or needs of consumers, often a goal for businesses to meet through the production of goods and services.