MANA 300 - Chapter 14 Questions and Answers
1. One of the four possible "outcomes" for a business identified by the text is
A. sell the business to an employee
B. merge with another business
C. go global
D. change its product line
A. sell the business to an employee
2. If one tries to ...
MANA 300 - Chapter 14 Questions and
Answers
1. One of the four possible "outcomes" for a business identified by the text is
A. sell the business to an employee
B. merge with another business
C. go global
D. change its product line - answer A. sell the business to an employee
2. If one tries to sell their business in a hurry
A. it is likely they will regret the move
B. they can usually find someone who is anxious to be an entrepreneur
C. they might get much less than it is worth
D. it is possible to take advantage of certain income tax breaks - answer C. they
might get much less than it is worth
3. Owners who intend to sell their business should ensure that
A. the business is in a mature stage
B. it can run without them
C. they don't saturate the market
D. there is lots of cash in the bank - answer B. it can run without them
4. A big shock is usually in store for entrepreneurs when
A. competitors become aggressive
B. banks require monthly interest payments on their loan
C. key employees ask for a raise
D. they receive the first offer for their business - answer D. they receive the first offer
for their business
5. Prospective buyers are very interested in businesses that
A. have a friendly work atmosphere
B. have established themselves as price leaders
C. have consistent revenue
D. don't rely on technology instead of people - answer C. have consistent revenue
6. In a recent survey, ______ family businesses had no formal succession plans
A. 80 percent of
B. very few
C. second generation
D. less than 25 percent of well established - answer A. 80 percent of
7. There are many people who believe that
A. children always wants to succeed their parents in the family business
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