CHAPTER 15

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

True

T/F: The liquidity event stands for positioning the venture for the realization of a cash return for the owners and investors.

True

T/F: There are two types of succession pressures: family and non-family.

True

What are the steps in developing a succession strategy:

1. understanding the contextual aspects 2. identifying successor qualities 3. carrying out the succession plan

A type of successor who is high in ingenuity, creativity, and drive would be considered a(n)

Entrepreneurial Successor

Which is an influencing factor in succession? a. government regulation b. family and business cultural issues c. the competition d. current economic conditions

Family and business cultural issues

What are three types of successors?

Managerial Successor, Opportunistic successor, entrepreneurial successor, and family successor

A type of successor who is interested in efficiency, internal control, and effective use of resources would be considered a(n)

Managerial succesor

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: The forcing events that require an entrepreneur to step aside and let someone direct the operation are usually unforeseen and create major problems for the business.

True

What is the average life expectancy of a privately held firm?

24 Years