Which of the following scenarios best exemplifies a leveraged buyout of a microchip manufacturer, Rigoletto Inc.?

A. Rigoletto buys back a large amount of its own shares from the stock market.
B. A private equity firm, Stormcloud Inc., buys a large number of shares of Rigoletto in order to publicly trade it under a new name.
C. The owner of another company buys all the outstanding shares of Rigoletto in order to take it private.
D. Rigoletto sells all its shares and declares bankruptcy.


Answer: C

Business

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