ECON 3310 Chapter 15 Exam Latest Update
Which of the following is not an exit strategy? - ANSWER Franchising
When passing down a family business, ________ of businesses make it to
the third generation. - ANSWER 12 percent
Which of the following is not an important part of a succession plan? -
ANSWER Evaluate potential successors based on how similar they are to
you
The Family Business Institute indicates that about ________ percent of
successful ventures make it to the second generation of ownership. -
ANSWER 30
The most common method of harvesting a venture is through - ANSWER
direct sale of the business
An ESOP: - ANSWER motivates employees because they realize they are
working for themselves.
A two- to three-year plan to sell a business to employees is: - ANSWER an
ESOP.
The key issue in passing the business on to an employee is - ANSWER
ownership
, An exit strategy should be put in place during the ________ stage of the
business. - ANSWER start-up
All of the following are benefits of an ESOP except: - ANSWER it is
relatively simple to establish.
According to the Small Business Administration, the failure rate of new
businesses within the first few years is: - ANSWER 50 percent.
Which of the following is not a requirement for keeping a new venture afloat
and reducing the risk of business failure? - ANSWER Excess optimism is
fine as long as the business is successful
Management buyouts usually involve a ________ of the venture for some
predetermined price. - ANSWER direct sale
Which of the following is not a purpose of the Bankruptcy Act of 1978? -
ANSWER Protect creditors from undue delay of money
Chapter 11 is the type of bankruptcy that results in: - ANSWER
reorganization.
Which methods of bankruptcy require the entrepreneur to come up with a
payment plan? - ANSWER Chapters 11 and 13
Exchanging stock or something else for existing debt under Chapter 11
bankruptcy is called: - ANSWER substitution.
A common reason why companies do not come out successfully from a
Chapter 11 bankruptcy is because they - ANSWER wait too long to file for
protection
This occurs when two or more of the largest creditors agree to postpone
any claims, acting as stimulus for smaller creditors to also agree to the
plan. - ANSWER Extension
When the debt is prorated to the creditors as a settlement in Chapter 11
this is called: - ANSWER composition settlement.
Which of the following is not an exit strategy? - ANSWER Franchising
When passing down a family business, ________ of businesses make it to
the third generation. - ANSWER 12 percent
Which of the following is not an important part of a succession plan? -
ANSWER Evaluate potential successors based on how similar they are to
you
The Family Business Institute indicates that about ________ percent of
successful ventures make it to the second generation of ownership. -
ANSWER 30
The most common method of harvesting a venture is through - ANSWER
direct sale of the business
An ESOP: - ANSWER motivates employees because they realize they are
working for themselves.
A two- to three-year plan to sell a business to employees is: - ANSWER an
ESOP.
The key issue in passing the business on to an employee is - ANSWER
ownership
, An exit strategy should be put in place during the ________ stage of the
business. - ANSWER start-up
All of the following are benefits of an ESOP except: - ANSWER it is
relatively simple to establish.
According to the Small Business Administration, the failure rate of new
businesses within the first few years is: - ANSWER 50 percent.
Which of the following is not a requirement for keeping a new venture afloat
and reducing the risk of business failure? - ANSWER Excess optimism is
fine as long as the business is successful
Management buyouts usually involve a ________ of the venture for some
predetermined price. - ANSWER direct sale
Which of the following is not a purpose of the Bankruptcy Act of 1978? -
ANSWER Protect creditors from undue delay of money
Chapter 11 is the type of bankruptcy that results in: - ANSWER
reorganization.
Which methods of bankruptcy require the entrepreneur to come up with a
payment plan? - ANSWER Chapters 11 and 13
Exchanging stock or something else for existing debt under Chapter 11
bankruptcy is called: - ANSWER substitution.
A common reason why companies do not come out successfully from a
Chapter 11 bankruptcy is because they - ANSWER wait too long to file for
protection
This occurs when two or more of the largest creditors agree to postpone
any claims, acting as stimulus for smaller creditors to also agree to the
plan. - ANSWER Extension
When the debt is prorated to the creditors as a settlement in Chapter 11
this is called: - ANSWER composition settlement.
