Suppose the employees of Air Canada borrowed heavily to buy all of the firm's stock and take the company private. This would be an example of a(n) _______________.

A) Proxy contest.
B) Merger acquisition.
C) Asset purchase acquisition.
D) Taxable acquisition.
E) Leveraged buyout.

Leveraged Buyout

An acquisition of a company, primarily funded by borrowed money, where the assets of the company being acquired and those of the acquiring company are used as collateral.

Proxy Contest

An event where two or more competing parties seek to collect enough shareholder votes to control the company's board of directors.

Asset Purchase

The buying of a company's assets instead of its stock, often to acquire specific items rather than taking over the business entirely.