Which of the following is not a correct matching of exit plan to the description of that plan?
A) Using an ESOP - selling shares of stock to employees at a reduced price.
B) Creating a public offering (IPO) - selling shares of ownership via public equity markets.
C) Using an MBO - managers and/or executives purchase controlling interest from shareholders.
D) Selling equity stake to partner - borrowing low-interest funds from strategic partner.

Question

Quizplus · Accepted Answer

Selling an equity stake to a partner typically involves selling a portion of the company's ownership to a strategic partner, not borrowing low-interest funds from them. Borrowing funds would be a financial transaction, not an exit strategy.

Which of the Following Is Not a Correct Matching of Exit