Which of the Following Defines Friendly Buyout

question 45

Multiple Choice

Which of the following defines friendly buyout?

• A) The closing of a small business with all debts paid
• B) The transfer of ownership to family members, customers, employees, children, etc.
• C) Insurance that protects a business in the event of a natural disaster that affects the ability of a company to conduct business
• D) A nonprofit association dedicated to educating friends and helping their small businesses start, grow, and succeed nationwide
• E) A stock offering in which the owner or owners of equity in a formerly private company have their private holdings transferred into issues tradable in public markets

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Definitions:

Expenses

Costs incurred by a business or individual in the process of earning revenue.

Owner Financing

A method of financing in which the seller of a property provides a loan to the buyer directly, often with flexible terms.

Creditors Or Lenders

Individuals or institutions that lend money or extend credit to others, with the expectation of being repaid with interest.

Revenues

The total amount of money received by a company for goods sold or services provided during a certain period of time.