Ch. 15 Quiz

T/F: Depending on the situation, some qualities or characteristics a successor should possess are more important than others.

True

T/F: Loss of ownership control is often attributable to one of the "FourDs": disability, death, dissolution, and debtors hip.

True

T/F: Only three out of ten privately held firms survive into a second generation.

True

T/F: The harvest decision may come when the venture has grown to a stage where an IPO is a possibility.

True

T/F: The liquidity event can be achieved through an IPO or complete sale of the venture.

True

T/F: It is not necessary for the entrepreneur to seek professional advice and legal counsel when liquidating the firm.

False

T/F: A harvest plan defines how and when the owners and investors will realize an actual cash return on their investment.

True

T/F: Although family members may not play an active role in the business, they still may want to inherit part of the business.

True

T/F: An entrepreneurial successor is someone who is interested in efficiency and the effective use of resources.

True

T/F: An exit strategy is defined as that component of the business plan where an entrepreneur describes a method by which investors can realize a tangible return on their investment.

True