B101 L13

Having a clear exit strategy is Important.

• True

• False

Which one of the following options is NOT the reason why a business will exit?

• Business failure

• Owner retirement

• Family succession

• Revenge

When a business owner sells his/her company. It is guaranteed that the employees will be well taken care of.

• True

• False

Which one of the following statements is TRUE with regards to an Employee Stock Ownership Plan (ESOP)?

• Employees are forced out of the company

• Owner cannot borrow funds from the company

• If the value of the stock falls, employees are negatively affected

• Employees can borrow funds from the company

Initial Public Offering (IPO) are loans sold to the public.

• True

• False

Which one of the following options motivates a company to IPO?

• Decrease in reputation

• Sell shares to the public

• IPO process is cheap

• Share price will definitely be low

In a sale of company, the business owner can choose the person or company he wants to sell to.

• True

• False