Ted Is Retiring in Five Years and Is Thinking of Selling

Multiple Choice

Ted is retiring in five years and is thinking of selling the business.Ramon,his general manager,tells him that he,the other managers,and the employees want to buy the business from him.Ted sets up a process where all the managers and employees "buy" stock in the company each month through payroll deductions,so that in five years the employees hold 100% of the company.This is an example of:

A) a sale for cash plus a note.
B) a leveraged buyout.
C) a straight sale.
D) an ESOP.