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A takeover financed by very large amounts of borrowed money is a:
ALeveraged buyout
BLeveraged buyback
CLeveraged bailout
DLeveraged bargain
Answer & Solution
Correct answer: A. Leveraged buyout
1. Debt supplies most of the price.
2. The target itself may secure the loan.
3. It is a leveraged buyout.
_Source: OpenStax Introduction to Business, Chapter 4, Forms of Business Ownership._
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