Exam 13: Exit Strategies For Entrepreneurs: The Concluding Act

Several investors are negotiating to purchase a business. To finance the purchase,they make a loan from a major bank and pledge the assets of the company that they want to buy as collateral for the loan. This is known as a

A transfer of ownership plan is a situation where a business contributes to an Employee Stock Ownership Trust which uses the money to purchase shares of the business from existing shareholders.

An entrepreneur's use of an extreme initial offer in selling her business is widely considered unethical.

When a company goes public (wants to sell shares of stock),it must prepare a document that describes the company and lists such things as potential risks,how the raised money will be used,the company's dividend policy,etc. This document is known as

A plan to transfer ownership from an entrepreneur to employees in which an Employee Stock Ownership Trust is used to borrow money to purchase shares of stock from the business is known as a trust plan.

An entrepreneur wants to sell his business. He prepares a document that contains information about the business. This document is known as a selling memorandum.

When negotiating,it is best to "win at all costs."

A student confronts his teacher because he is unsatisfied with the grade he received on his paper. The teacher believes that there are too many grammatical errors to get a good grade. However,with the best interests of the student at hand,the teacher allowed him to redo the paper and correct all the mistakes and then she will reevaluate his score. This agreement is referred to as

The benefits of a company going public always outweigh the costs of doing so.

A limited partnership could be used to transfer a family-owned business to others in the family..

In exiting the business,an entrepreneur transfers the majority of the shares of stock to family members,but retains control of the operations of the business for the next five years. This is an example of a (an)

Assume that you work for a business in which the entrepreneur/owner wants to transfer ownership of the business to the employees. The entrepreneur sets up an Employee Stock Ownership Trust which borrows money and buys shares of stock from the business. These shares will later be transferred to the employees. This form of transfer is known as

Which of the following is an example of an intangible asset?

Which of the following is not related to ESOP?

When a company has plenty of money to pay its debts,it is known to be bankrupt.

Steve Luster,founder of Chems Laboratories,wants to be prepared for every type of negotiation that he might encounter as president of his company. With which of the following parties might Steve have to negotiate?

An entrepreneur wants to transfer ownership of the business to her employees. She sets up an Employee Stock Ownership Trust which borrows money to buy shares of stock which will eventually be passed on to the employees. This type of transfer of ownership is known as

Which of the following entrepreneurs would be the most likely to choose the exit strategy that yields a significant amount of cash on closing rather than a smaller amount on closing and payments over some time?

Assume that an entrepreneur signs an agreement with a bank wherein the bank holds title and ownership of the entrepreneur's business and will transfer that title and ownership to the entrepreneur's child when the child reaches the age of 21. This kind of an arrangement is known as

What does "win-win" mean?