What Are the Exit Strategies Available to Entrepreneurs When It

question 45

Multiple Choice

What are the exit strategies available to entrepreneurs when it is time to step down?

• A)Close the business
• B)File for Chapter 7
• C)Sell to outsiders
• D)Force a family member to take over

---

Definitions:

Incompetent Principal

A legal term referring to a person who lacks the capacity to engage in a contract or manage their own affairs due to mental disability, illness, or minority.

Gratuitous Agent

An agent who acts on behalf of another without receiving any compensation.

Consideration

A fundamental element of a contract, referring to something of value exchanged between parties, such as services, goods, or money.

Contractual Capacity

The legal ability to enter into a binding agreement.