Chat with AIExam 17: Planning for Growth and Change
The common practice of outsourcing the upstream activities of a business - raw materials, manufacturing, assembly, and inventory-presents advantages with no risk to an entrepreneur.
(40) 
VerifiedFalse
Describe a phased sale.
(32) VerifiedSome entrepreneurs want to soften the emotional blow of selling the business, not to mention softening the tax consequences, by agreeing with the buyer-an individual or another firm-to sell in two phases. During the first phase, the entrepreneur sells a percentage of the company but remains in control of operations and can continue to grow the company to the point at which the buyer has agreed to complete the purchase. This approach gives the entrepreneur the ability to cash out a portion of the investment and still manage the business for an agreed-upon time, during which the new owner will probably be learning the business and phasing in. In the second phase, the business is sold at a prearranged price, usually a multiple of earnings. This approach is fairly complex and should always be guided by an attorney experienced in acquisitions and buy-sell agreements. The buy-sell agreement, which spells out the terms of the purchase, specifies the amount of control the new owner can exert over the business before the sale has been completed and the amount of proprietary information that will be shared with the buyer between Phases 1 and 2.
_____ purchase a product at a discount off list price and then sell it and handle collections themselves, thus solving the problem of cultural differences and the related difficulties in these transactions.
(38) VerifiedB
Which of the following is NOT a step in the process for addressing risk assessment?
(38) The immediately precipitating cause that forces a company into bankruptcy is usually
(33) Discuss the important questions that an effective contingency plan should answer.
(29) The term born global usually denotes a company that generates at least _____ percent of its sales in the first _____ from the international marketplace and that derives a competitive advantage from outsourcing and selling in several countries.
(43) When sales decline and positive cash flow starts looking like a memory, entrepreneurs often
(36) Once a business has successfully passed through the phase of rapid growth and the entrepreneur is able to effectively manage the financial gains of growth, the business will have reached
(37) Maintaining sufficient inventory is an example of a _____ strategy.
(36) It is extremely difficult to calculate the probability that a given risk will occur with any degree of accuracy.
(34) _____ is generally an integral and critical part of a team-based approach to organizational management.
(32) During startup, an entrepreneur's main concerns are to acquire sufficient capital, _____, and design a way to deliver a product or service.
(38) A Chapter _____ reorganization under the bankruptcy code is a reorganization of the finances of a business so that it can continue to operate and begin to pay its debts.
(29) Most product liability insurance covers all of the following EXCEPT
(32) Smaller businesses for sale often use the services of _____, whereas high-growth ventures are more likely to employ the services of _____.
(31) _____ are used to protect a company against potential risk that can't be prevented.
(32) 
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