A leveraged buyout refers to

A leveraged buyout refers to


a. a firm restructuring itself by selling off unrelated units of the company's portfolio.


b. a firm pursuing its core competencies by seeking to build a top management team that comes from a similar background.


c. a restructuring action whereby a party buys all of the assets of a business, financed largely with debt, and takes the firm private.


d. an action where the management of the firm and/or an external party buy all of the assets of a business financed largely with equity.


Answer: a restructuring action whereby a party buys all of the assets of a business, financed largely with debt, and takes the firm private.


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