Which of the Following Entrepreneurs Would Be the Most Likely

question 38

Multiple Choice

Which of the following entrepreneurs would be the most likely to choose the exit strategy that yields a significant amount of cash on closing rather than a smaller amount on closing and payments over some time?

• A) Emma Cornell, 50, looking to retire and maintain her current lifestyle.
• B) Margie Clampet, 49, manager of her company for the past 25 years.
• C) David Leonard, 29, planning to invest in a cosmetics firm.
• D) Don Ritters, 41, looking for a career in acting while enjoying life.
• E) All of the above

---

Definitions:

Straight-Line Depreciation

A technique for computing an asset's depreciation that presumes the asset depreciates by a consistent amount annually throughout its expected lifespan.

Expansion Project

An expansion project involves undertaking new initiatives or investing in resources to grow a business or increase its capacity.

Crossover Point

The crossover point is the moment when two or more alternatives have the same value or cost, often used in financial analysis to determine when an investment will start to be profitable.