Several Investors Are Negotiating to Purchase a Business

Multiple Choice

Several investors are negotiating to purchase a business. To finance the purchase,they make a loan from a major bank and pledge the assets of the company that they want to buy as collateral for the loan. This is known as a

A) trust buyout.
B) stock ownership program.
C) noncompetitors buyout.
D) leveraged buyout.
E) selling memorandum.