Why Do Entrepreneurs Typically Use the Exit Strategy of Handing

question 18

Essay

Why do entrepreneurs typically use the exit strategy of handing down the business to a family member?

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Definitions:

Stock Splits

A corporate action that divides the company's existing shares into multiple shares to boost the liquidity of the shares, though the overall market cap remains the same.

Stock Dividends

A dividend payment made in the form of additional shares rather than a cash payout, increasing the number of shares owned.

Common Shares Issued

Refers to the number of shares that have been allocated to shareholders as part of a company's capital stock.

Market Price

The current price at which a particular security, commodity, or asset can be bought or sold on the market.