选课中心
7099人选课
GMAT公开讲座
0元
GRE公开讲座
0元
一对一体验课
99元
GMAT模考网站
10000人
GRE模考网站
GMAT课程
GRE课程
托福辅导课程
【定制】1v1
私人订制
资料下载
考前冲刺
扫码添加助教
免费领取
备考资料大礼包
扫码关注公众号
本文来自GMAT阅读题库(点击查看更多),为考生提供GMAT阅读题目练习及答案解析,希望对大家GMAT备考有所帮助。点击下载更多GMAT备考必备资料。更多精彩尽请关注新东方在线GMAT频道!
GMAT阅读题目内容
In the early to mid-1980s, a business practice known as a "leveraged buyout" became popular as a method for companies to expand without having to spend any of their own assets. The leveraged buyout was not without its problems, however, and in time it came to represent in the public imagination not only corporate ingenuity and success, but also excess and greed. Many of the main corporate figures of the 1980s saw spectacular rises and, perhaps inevitably, spectacular falls as they abused the leveraged buyout as a means to extraordinary financial gain.
A leveraged buyout entails one company purchasing another using the assets of the purchased company as the collateral to secure the funds needed to buy that company. The leveraged buyout allows companies to take on debt that their own assets would have been insufficient to secure in order to finance expansion. The benefit of the leveraged buyout is obvious: companies with insufficient funds can still expand to compete with larger competitors. The drawbacks, however, became apparent only after the fact: the purchased company must perform extraordinarily well in order to generate the capital to pay off the loans that made the purchase possible in the first place. When the purchased company underperforms, the buyer must somehow find the money to pay off the loans. If such funds are not obtained, the buyer may be forced to sell off the company, or parts thereof, for less than the purchase price. In these cases, the buyer is still responsible for repaying the debt that is not covered by the sale price. Many of these deals resulted in the evisceration of the purchased companies, as subparts were sold to pay down the loans and employees were laid off to reduce costs and increase profits.
The most famous leveraged buyout is probably the 1988 purchase of RJR Nabisco by Kohlberg Kravis Roberts ("KKR"). The purchase price for the corporate giant RJR Nabisco was $25 billion, almost all of which was borrowed money. The takeover was "hostile," meaning that RJR Nabisco resisted any overtures from potential buyers. KKR ultimately succeeded by buying a controlling interest in RJR Nabisco, thereby obtaining voting control over the company. By the mid-1990s, though, KKR had seen a reversal of fortune and was forced to sell off RJR Nabisco in order to relieve itself of the crushing debt load.
The 1980s were the heyday of the leveraged buyout, as lending institutions were willing to loan money for these ventures. When the deals turned out to be much riskier in life than on paper, the lenders turned away from the buyouts and returned to the notion that borrowers must possess adequate collateral of their own.
1、The primary purpose of the passage is to
A. criticize the motives of those who use risky financial strategies
B. challenge a common perception of financiers
C. describe the evolution and application of a certain financial device
D. explain the popularity of leveraged buyouts during a certain period
E. argue that leveraged buyouts are detrimental to overall financial health
资料下载
新东方GMAT佛脚词汇1.0版本
发布时间:2023-06-30添加新东方美研助教号
回复【资料】获取
新东方GMAT数学500题资料下载
发布时间:2023-05-26添加新东方美研助教号
回复【资料】获取
新东方GMAT800题资料下载
发布时间:2022-05-21添加新东方美研助教号
回复【资料】获取
1000句GMAT真实句子改错问题
发布时间:2022-04-17添加新东方美研助教号
回复【资料】获取
2024杨鹏阅读难句(GMAT+GRE)教程
发布时间:2022-04-17添加新东方美研助教号
回复【资料】获取
新东方GMAT数学500题(解析及答案)
发布时间:2019-11-27添加新东方美研助教号
回复【资料】获取
新东方GMAT800题(逻辑+语法+阅读)
发布时间:2019-11-27添加新东方美研助教号
回复【资料】获取
新东方GMAT佛脚词汇1.0版本
发布时间:2019-11-27添加新东方美研助教号
回复【资料】获取
GMAT词汇/长难句/语法资料大全
发布时间:2019-11-27添加新东方美研助教号
回复【资料】获取
GMAT语文考试圣经(Bible)电子版
发布时间:2019-11-27关注新东方在线美研订阅号
回复【GMAT】获取
GMAT推理圣经PDF电子版
发布时间:2019-11-27添加新东方美研助教号
回复【资料】获取
GMAT考试OG五个版本题号对照表
发布时间:2019-11-27添加新东方美研助教号
回复【资料】获取
GMAT Ultimate Grammar电子书籍PDF
发布时间:2019-11-27添加新东方美研助教号
回复【资料】获取
添加美研助教号,
回复【GMAT】获取备考必看资料包
推荐阅读
更多>>新东方在线GMAT频道为大家带来GMAT阅读复习的五大步骤,希望对大家GMAT备考有所帮助。更多精彩尽请关注新东方在线GMAT频道! 1:原来
新东方在线GMAT频道为大家带来GMAT阅读背景的培养,希望对大家GMAT备考有所帮助。更多精彩尽请关注新东方在线GMAT频道! 一、经济学
新东方在线GMAT频道为大家带来GMAT阅读复习效率不高怎么办,希望对大家GMAT备考有所帮助。更多精彩尽请关注新东方在线GMAT频道! 建
新东方在线GMAT频道为大家带来GMAT阅读提高速度的根本方法,希望对大家GMAT备考有所帮助。更多精彩尽请关注新东方在线GMAT频道! 1
新东方在线GMAT频道为大家带来GMAT阅读如何避免错误,希望对大家GMAT备考有所帮助。更多精彩尽请关注新东方在线GMAT频道! 要避免GMA
新东方在线GMAT频道为大家带来GMAT阅读技巧的提升,希望对大家GMAT备考有所帮助。更多精彩尽请关注新东方在线GMAT频道! GMAT阅读推
新东方在线GMAT频道为大家带来GMAT阅读备考的注意事项,希望对大家GMAT备考有所帮助。更多精彩尽请关注新东方在线GMAT频道! GMAT阅
新东方在线GMAT频道为大家带来GMAT阅读怎么提高自己的能力,希望对大家GMAT备考有所帮助。更多精彩尽请关注新东方在线GMAT频道! 建
新东方在线GMAT频道为大家带来GMAT阅读长句子的备考,希望对大家GMAT备考有所帮助。更多精彩尽请关注新东方在线GMAT频道! 1 首先
新东方在线GMAT频道为大家带来GMAT阅读水平怎么提高,希望对大家GMAT备考有所帮助。更多精彩尽请关注新东方在线GMAT频道! 下面就来
资料下载
更多>>添加新东方美研助教号
回复【资料】获取
添加新东方美研助教号
回复【资料】获取
添加新东方美研助教号
回复【资料】获取
添加新东方美研助教号
回复【资料】获取
添加新东方美研助教号
回复【资料】获取
添加新东方美研助教号
回复【资料】获取
添加新东方美研助教号
回复【资料】获取
添加新东方美研助教号
回复【资料】获取
添加新东方美研助教号
回复【资料】获取
关注新东方在线美研订阅号
回复【GMAT】获取
添加新东方美研助教号
回复【资料】获取
添加新东方美研助教号
回复【资料】获取
添加新东方美研助教号
回复【资料】获取
阅读排行榜
相关内容