Which of the Following Is a Characteristic of Leveraged Buyouts

question 3

Multiple Choice

Which of the following is a characteristic of leveraged buyouts?

• A) Buyouts are usually financed by debt.
• B) Some corporate assets are often sold after the buy-out is completed.
• C) Funds for the buy-out are raised through securities markets.
• D) all the options are characteristics of a leveraged buyout.

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Definitions:

Activity Rate

A measure used in activity-based costing to assign costs to activities based on their use of resources.

Activity-Based Costing

A methodology for costing that detects operations in a company and assigns the costs of these operations to all products and services in proportion to their true use.

Activity Cost Pools

A method in managerial accounting where costs are aggregated according to the activities that incur them, for more accurate allocation.

Product Units

Individual items or outputs produced by a manufacturing or production process.