A Two- to Three-Year Plan to Sell a Business to Employees

question 29

Multiple Choice

A two- to three-year plan to sell a business to employees is:

• A) an ESOP.
• B) an acquisition.
• C) succession.
• D) the most popular method of exit.

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Definitions:

Controllable Revenues

Revenues earned by the profit center.

Income Statement

A financial report detailing a business's income, outgoings, and net profit or loss for a certain timeframe.

Responsibility Accounting Reports

Internal financial reports that track the financial performance of specific departments, managers, or units, highlighting areas of responsibility.

Profit Centers

Parts of a company treated as standalone businesses responsible for generating their own revenues and profits.