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CTP · Question #776
(Topic 8) A small group of investors is purchasing a company using a large amount of debt. This group is intending to sell off pieces of the acquired company to other firms that it believes can take…
The correct answer is C. A leveraged buyout. See the full explanation below for the reasoning.
Question
- (Topic 8)
A small group of investors is purchasing a company using a large amount of debt. This group is intending to sell off pieces of the acquired company to other firms that it believes can take advantage of potential synergies. What is this type of a transaction more specifically known as?
Options
- AA merger
- BAn acquisition
- CA leveraged buyout
- DAn asset purchase
How the community answered
(39 responses)- A15% (6)
- B8% (3)
- C72% (28)
- D5% (2)
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