Final answer:
A leveraged buyout (LBO) involves investors using borrowed money to acquire a controlling stake in a company. In the case of a telecommunications firm like Telbok Inc., an LBO could involve investors borrowing funds to purchase a significant portion of Telbok's shares and gain control of the company.
Step-by-step explanation:
A leveraged buyout (LBO) refers to a scenario where a group of investors uses borrowed money to acquire a controlling stake in a company. In the case of a telecommunications firm like Telbok Inc., a leveraged buyout could involve investors borrowing funds from banks or other sources to purchase a significant portion of Telbok's shares. This allows the investors to gain control of the company and potentially make changes to its operations or strategy.