Earn-Out Is When the Seller Agrees to Accept a Percentage

question 78

True/False

Earn-out is when the seller agrees to accept a percentage of the sales price and stays on to manage the business for a few more years under the new owner.

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Definitions:

Embryonic Plant

A stage in plant development where the embryo forms within the seed, eventually growing into a new plant.

Aggregate Fruits

Fruits that form from the merger of several ovaries that were separate in a single flower, resulting in a cluster of fruits.

Multiple Fruits

Fruits that form from the ovaries of many flowers growing closely together, as seen in figs, pineapples, and mulberries.

Simple Fruits

Fruits that develop from a single ovary of a single flower and are generally composed of the ovary wall and seeds.