An MBO is a(n) _____ in which management is part of the group buying the company.
A) ESOP
B) IPO
C) PPO
D) LBO

Question

Quizplus · Accepted Answer

An MBO (management buyout) is a situation in which the existing management team of a company purchases it from the current owners. An LBO (leveraged buyout) is a type of MBO in which financing is obtained through significant amounts of debt. Therefore, option D (LBO) is the best choice as it fits the description of the question. Options A (ESOP), B (IPO), and C (PPO) do not fit the description, as they refer to different types of financial transactions.

An MBO Is A(n) _____ in Which Management Is Part