Sometimes,business Owners Sell the Majority Interest in Their Companies to Investors,competitors,suppliers,or

question 93

Multiple Choice

Sometimes,business owners sell the majority interest in their companies to investors,competitors,suppliers,or large companies with an agreement that they will stay on after the sale.This is called:

• A)sale of controlling interest.
• B)restructuring the company.
• C)using a two-step sale.
• D)None of the above

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Definitions:

Intangible Assets

Non-physical assets owned by a company, such as patents, trademarks, goodwill, and copyrights, that are valuable but lack physical substance.

Common Stock

A type of security that represents ownership in a corporation, giving shareholders voting rights and a share in the company's profits through dividends.

Noncash Investing

Investing activities that do not involve direct cash transactions, such as acquiring assets through exchange or issuing stock for assets.

Free Cash Flow

The amount of cash a company generates after accounting for capital expenditures required to maintain or expand its asset base.