Bob Boyd Is Developing an Exit Strategy for His Sporting

question 74

Multiple Choice

Bob Boyd is developing an exit strategy for his sporting goods business,since he plans to retire within the next three years.Bob knows that one of the company's greatest strengths is that there is a core group of motivated employees who have been with the company for years.Based on this information,which exit strategy would be the best option for Bob?

• A) Sell to a strategic buyer
• B) Sell to a key employee or group of employees
• C) Take the company public
• D) Undertake a planned liquidation

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Definitions:

Exclusive Contracts

Agreements that restrict parties from engaging in similar agreements with others, often found in employment or distribution deals in various industries.

Economy of Scale

The cost advantage that arises with increased output of a product, where the average cost per unit falls as production scales up.

Sound-on-film

A technology that synchronizes audio with moving pictures, allowing for sound to be recorded onto the same film strip as the image.

Movietone

Movietone refers to an early sound film system that combined motion pictures with synchronized recorded sound.