The management of Alkort Corporation forms Bortalk Corporation in which management owns some stock and institutional investors own the rest. Bortalk Corporationissues bonds to institutional investors to raise cash, with which it purchases the assets or
stock of Alkort Corporation. The assets of Alkort Corporation 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.
Answer: A
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Indicate whether the statement is true or false
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