Question 1

Which of the following is not an important part of a succession plan?

Accepted Answer

A) estimate the firm's value 
B) evaluate potential successors based on how similar they are to you 
C) provide a transition period so the successor can learn the business 
D) set a date for completion of the transition and stick to it 
A) estimate the firm's value 
B) evaluate potential successors based on how similar they are to you 
C) provide a transition period so the successor can learn the business 
D) set a date for completion of the transition and stick to it B

Question 2

It is common for a buyer to purchase a business using notes based on future profits.

Accepted Answer

A) True 
 B)False  True

Question 3

The Family Business Institute indicates that about ___ percent of successful ventures make it to the second generation of ownership.

Accepted Answer

A) 40 
B) 20 
C) 30 
D) 10 
A) 40 
B) 20 
C) 30 
D) 10 C

Question 4

The Bankruptcy Act of 1978 was designed to protect creditors from receiving nothing in bankruptcy.

Accepted Answer

A) True 
 B)False

Question 5

Stress points are a result of all of the following except:

Accepted Answer

A) sales. 
B) the need for new key personnel. 
C) major capital investment. 
D) lack of time. 
A) sales. 
B) the need for new key personnel. 
C) major capital investment. 
D) lack of time.

Question 6

In establishing a price for a management buyout the entrepreneur should not include the goodwill value established from past revenue because it can't be quantified.

Accepted Answer

A) True 
 B)False

Question 7

Chapter 11 bankruptcy allows a firm to reorganize and prepare strategies to improve future profits.

Accepted Answer

A) True 
 B)False

Question 8

A common reason why companies do not come out successfully from a Chapter 11 bankruptcy is because they ____.

Accepted Answer

A) are in denial 
B) don't have legal representation 
C) wait too long to file for protection 
D) do not understand the bankruptcy process 
A) are in denial 
B) don't have legal representation 
C) wait too long to file for protection 
D) do not understand the bankruptcy process

Question 9

Bankruptcy can be used as a bargaining chip with creditors to allow the venture to voluntarily reorganize.

Accepted Answer

A) True 
 B)False

Question 10

An employee stock option plan establishes a new legal entity.

Accepted Answer

A) True 
 B)False

Question 11

A "management buyout" is the same thing as an "ESOP."

Accepted Answer

A) True 
 B)False

Question 12

The majority of bankruptcies are:

Accepted Answer

A) corporate bankruptcies. 
B) partnership bankruptcies. 
C) S Corporation bankruptcies. 
D) individual bankruptcies. 
A) corporate bankruptcies. 
B) partnership bankruptcies. 
C) S Corporation bankruptcies. 
D) individual bankruptcies.

Question 13

Because it is so severe,Chapter 7 must always be voluntary.

Accepted Answer

A) True 
 B)False

Question 14

The most severe form of bankruptcy is:

Accepted Answer

A) Chapter 7. 
B) Chapter 11. 
C) Chapter 13. 
D) prepackaged bankruptcy. 
A) Chapter 7. 
B) Chapter 11. 
C) Chapter 13. 
D) prepackaged bankruptcy.

Question 15

ESOPs account for about 20% of the nation's 10 million employees.

Accepted Answer

A) True 
 B)False

Question 16

Since 2010 the number of business filings for bankruptcy has steadily increased each year.

Accepted Answer

A) True 
 B)False

Question 17

Presently there are about 11,500 ESOP companies in the United States.

Accepted Answer

A) True 
 B)False

Question 18

A business,when it comes to selling,will be less valuable if it is on a narrow,well-defined segment.

Accepted Answer

A) True 
 B)False

Question 19

This occurs when two or more of the largest creditors agree to postpone any claims,acting as stimulus for smaller creditors to also agree to the plan.

Accepted Answer

A) Extension. 
B) Evolution. 
C) Substitution. 
D) Composition settlement. 
A) Extension. 
B) Evolution. 
C) Substitution. 
D) Composition settlement.

Question 20

ESOPs account for ____ of the nation's 10 million employees.

Accepted Answer

A) 15% 
B) 35% 
C) 40% 
D) 50% 
A) 15% 
B) 35% 
C) 40% 
D) 50%

Which of the following is not an important part of a succession plan?

It is common for a buyer to purchase a business using notes based on future profits.

The Family Business Institute indicates that about ___ percent of successful ventures make it to the second generation of ownership.

The Bankruptcy Act of 1978 was designed to protect creditors from receiving nothing in bankruptcy.

Stress points are a result of all of the following except:

In establishing a price for a management buyout the entrepreneur should not include the goodwill value established from past revenue because it can't be quantified.

Chapter 11 bankruptcy allows a firm to reorganize and prepare strategies to improve future profits.

A common reason why companies do not come out successfully from a Chapter 11 bankruptcy is because they ____.

Bankruptcy can be used as a bargaining chip with creditors to allow the venture to voluntarily reorganize.

An employee stock option plan establishes a new legal entity.

A "management buyout" is the same thing as an "ESOP."

The majority of bankruptcies are:

Because it is so severe,Chapter 7 must always be voluntary.

The most severe form of bankruptcy is:

ESOPs account for about 20% of the nation's 10 million employees.

Since 2010 the number of business filings for bankruptcy has steadily increased each year.

Presently there are about 11,500 ESOP companies in the United States.

A business,when it comes to selling,will be less valuable if it is on a narrow,well-defined segment.

This occurs when two or more of the largest creditors agree to postpone any claims,acting as stimulus for smaller creditors to also agree to the plan.

ESOPs account for ____ of the nation's 10 million employees.

Entrepreneurship and the Entrepreneurial Mind-Set

Entrepreneurial Intentions and Corporate Entrepreneurship

Entrepreneurial Strategy: Generating and Exploiting New Entries

Creativity and the Business Idea

Identifying and Analyzing Domestic and International Opportunities

Intellectual Property and Other Legal Issues for the Entrepreneur

The Business Plan: Creating and Starting the Venture

The Marketing Plan

The Organizational Plan

The Financial Plan

Sources of Capital

Informal Risk Capital, Venture Capital, and Going Public

Strategies for Growth and Managing the Implication of Growth

Accessing Resources for Growth From External Sources

Filters

Exam 15: Succession Planning and Strategies for Harvesting and Ending the Venture

Which of the following is not an important part of a succession plan?

It is common for a buyer to purchase a business using notes based on future profits.

The Family Business Institute indicates that about ___ percent of successful ventures make it to the second generation of ownership.

The Bankruptcy Act of 1978 was designed to protect creditors from receiving nothing in bankruptcy.

Stress points are a result of all of the following except:

In establishing a price for a management buyout the entrepreneur should not include the goodwill value established from past revenue because it can't be quantified.

Chapter 11 bankruptcy allows a firm to reorganize and prepare strategies to improve future profits.

A common reason why companies do not come out successfully from a Chapter 11 bankruptcy is because they ____.

Bankruptcy can be used as a bargaining chip with creditors to allow the venture to voluntarily reorganize.

An employee stock option plan establishes a new legal entity.

A "management buyout" is the same thing as an "ESOP."

The majority of bankruptcies are:

Because it is so severe,Chapter 7 must always be voluntary.

The most severe form of bankruptcy is:

ESOPs account for about 20% of the nation's 10 million employees.

Since 2010 the number of business filings for bankruptcy has steadily increased each year.

Presently there are about 11,500 ESOP companies in the United States.

A business,when it comes to selling,will be less valuable if it is on a narrow,well-defined segment.

This occurs when two or more of the largest creditors agree to postpone any claims,acting as stimulus for smaller creditors to also agree to the plan.

ESOPs account for ____ of the nation's 10 million employees.

Entrepreneurship and the Entrepreneurial Mind-Set

Entrepreneurial Intentions and Corporate Entrepreneurship

Entrepreneurial Strategy: Generating and Exploiting New Entries

Creativity and the Business Idea

Identifying and Analyzing Domestic and International Opportunities

Intellectual Property and Other Legal Issues for the Entrepreneur

The Business Plan: Creating and Starting the Venture

The Marketing Plan

The Organizational Plan

The Financial Plan

Sources of Capital

Informal Risk Capital, Venture Capital, and Going Public

Strategies for Growth and Managing the Implication of Growth

Accessing Resources for Growth From External Sources

Filters