Exam 13: Exit Strategies For Entrepreneurs: The Concluding Act

Top managers who buy out an entrepreneurship usually use a leveraged buyout.

When a company enters bankruptcy to reorganize and try to recover,it is known as which type of bankruptcy?

The balance sheet method of calculating the net worth of a company is assets minus liabilities.

Lisa DuPrey,founder of Cute Children Clothing,told one of her shoe vendors that the business was going to shutdown if the vendor couldn't offer a lower price for the shoes supplied. Since this vendor relies on the business from Lisa,it decided to give Lisa a large discount on her purchase order. However,Lisa had no intentions or reasons to shut down her operations because profits were steady. This unethical negotiation tactic is known as

An entrepreneur is preparing to sell her business and is attempting to place a value on it. In addition to everything else in the business,she has hired some of the very best people over the years and believes that these people add considerable value to the business. These valuable people are known as

Explain the "market method" of determining the value of a business.

Which of the following factors is not included when calculating the opportunity costs of investing in a business when using the excess earnings method?

According to research findings,which of the following negotiation tactics do many people consider to be unethical?

In terms of succession in family-owned businesses,it is a general rule that the larger and more successful the company the more bitter and costly the disputes.

An entrepreneur sells the business to a group of venture capitalists who want to buy the business because they believe it is a good investment and because they do not own a business in the same industry yet. This is known as a sale to

Adidas (athletic shoes)recently bought out Mennen Deodorant Lavatories in an attempt to expand its product line to deodorant. This is an example of transfer of ownership to

Which of the following is a good reason for an entrepreneur to "take the company public?"

Explain what leveraged buyout means.

Entrepreneurs tend to have feelings of commitment to the businesses that they started. The type of commitment that is defined as the possible lose of a valuable investment should they leave the business is known as

Explain what is involved in an ordinary Employee Stock Ownership Plan (ESOP).

Which of the following might be a disadvantage (or challenge)of an initial public offering?

No single exit strategy is best for all entrepreneurs.

Which of the following are earnings-based methods for valuing businesses?

Which of the following is not a common exit strategy?

An entrepreneur transfers the majority of the stock in his business to an attorney who is to hold the stock until the entrepreneur's children reach age 21. At that time,the stock is transferred to the children. This is an example of a limited partnership.