Answer (B) is correct . A leveraged buyout is a financing technique through which a company is purchased using very little equity capital. All of the company’s stock is purchased using mostly borrowed funds. The assets of the acquired company are used as collateral for the loans that financed the purchase.
Answer (A) is incorrect because A spin-off is a divestiture in which the stock of the subsidiary is distributed to the parent company’s stockholders.
Answer (C) is incorrect because A joint venture is an undertaking in which two or more independent companies combine their resources to accomplish a specific objective.
Answer (D) is incorrect because Liquidation is the piecemeal sale of a company’s assets.
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