A Going-Private Transaction in Which a Large Percentage of the Money

question 15

Multiple Choice

A going-private transaction in which a large percentage of the money used to buy the outstanding stock is borrowed is called a:

• A)tender offer.
• B)proxy contest.
• C)merger.
• D)leveraged buyout.
• E)consolidation.

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Definitions:

Congress

A national legislative body, particularly in the United States, consisting of two houses: the Senate and the House of Representatives, responsible for making federal laws.

Inherent Powers

Powers that are not explicitly stated but are implied in the constitution, allowing government to perform actions necessary for its functioning.

Legal Authority

The legally sanctioned power given to individuals or entities to make legal decisions, enforce laws, and administer justice.

Executive Agreements

International agreements entered into by the president that do not require Senate approval, often used in foreign policy.