The Management of Corporation a Forms Corporation B in Which

Multiple Choice

The management of Corporation A forms Corporation B in which management owns some stock and institutional investors own the rest.Corporation B issues bonds to institutional investors to raise cash, with which it purchases the assets or stock of Corporation A.The assets of Corporation A are used as security for the bonds.This action by management is best described as a:

A) leveraged buyout.
B) cash-out combination.
C) short-form merger.
D) compulsory share exchange.