An Earn-Out Is an Exit Strategy in Which an Entrepreneur

question 53

True/False

An earn-out is an exit strategy in which an entrepreneur can increase his or her payout by actively participating in the business to make sure the company hits specific performance targets.

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Definitions:

Thrust Faults

Types of reverse faults that have a dip of 45 degrees or less, meaning they are nearly horizontal; significant in shaping landscapes by pushing rocks upwards.

Cleavage

A geological term referring to the tendency of minerals to break along flat, parallel planes of weakness in their crystal structure.

Joints

Innate cracks or splits in rock formations that occur without any shift, typically due to how the rock reacts to pressure.

Mid-Ocean Ridges

Underwater mountain systems formed by plate tectonics, consisting of various mountains linked in chains.