Entrepreneurs Who Are Planning to Retire Often Use Two Strategies

question 160

Multiple Choice

Entrepreneurs who are planning to retire often use two strategies:

• A) sell to outsiders or arrange for an IPO.
• B) assume the role of a silent partner or sell to nonfamily insiders.
• C) sell to outsiders or sell to nonfamily insiders.
• D) sell to outsiders or sell to relatives.

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Definitions:

Working Capital

The difference between a company's current assets and current liabilities, indicating the short-term financial health and operational efficiency.

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including materials and labor.

Sales

The total amount of goods or services sold by a company, contributing to its revenue.

Sunk Cost

A cost that has already been incurred and cannot be recovered, which should not affect future business decisions.