Question

A popular financial strategy in which a company is acquired in a transaction financed largely by debt ∙ eventually paid off with money generated from the acquired company's operations or by sale of its assets is

Answer 1

The correct answer is the leveraged buyout. A leveraged buyout or also known as the LBO is defined as an acquisition of another company by means of having to use a significant amount of money that is borrowed in order to meet the cost of acquiring the company.