Business Harvesting Quiz

What is one of the greatest challenges confronting owners and entrepreneurs in privately held businesses?

• Management succession

• Marketing strategies

• Product development

• Financial planning

According to the 1984 succession case, under what condition can a small business be sued by an employee?

• If the employee is not given the same treatment as a son or daughter.

• If the business does not make a profit.

• If the employee works overtime.

• If the business hires too many employees.

Which strategy involves the owner considering employee stock ownership plans (ESOPs)?

• Consulting with selected family members

• Working with family involvement

• Considering employee stock ownership plans

• Selling or liquidating the business

What is an exit strategy in a business plan?

• A method for investors to realize a tangible return on their investment.

• A plan for expanding the business into new markets.

• A strategy for reducing operational costs.

• A method for hiring new employees.

What is an Initial Public Offering (IPO)?

• The private sale of a company's shares

• The registered public offering of a company's securities for the first time

• The acquisition of a company by another company

• The issuance of bonds by a company

What type of financial information is typically audited and included in an IPO prospectus?

• Audited financial statements

• Projected sales figures

• Marketing budgets

• Employee payroll data

What is required in the audited financial statements for annual reports?

• Balance sheets for the past 3 years

• Income and funds statements for the past 2 years

• Balance sheets for the past 2 years and income and funds statements for the past 3 years

• Income statements for the past 5 years

What must be included regarding the market in the annual report?

• Market trends

• Market in which the firm’s securities are traded

• Market competitors

• Market forecasts