A Private IPO Provides _____ Cash Than a LBO, but Allows

question 14

Multiple Choice

A private IPO provides _____ cash than a LBO, but allows the entrepreneur to _____ control of the firm

• A) less; release
• B) more; release
• C) less; retain
• D) more; retain

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Definitions:

Activity Variances

Differences between planned activity costs and the actual costs incurred for those activities.

Cost Drivers

Factors that cause the cost of an activity or operation to increase or decrease, such as machine hours, labor hours, or the volume of production.

Flexible Budget

A budget that adjusts or flexes for changes in the volume of activity, providing a more useful comparison of actual to budgeted performance.

Guests

Individuals who receive services or hospitality, often in contexts such as hotels, restaurants, or events.