Which harvest option can force a leadership team to focus on short-term profits and performance results?
A) Management buyout (MBO)
B) Employee Stock Ownership Plan (ESOP)
C) Initial Public Offering (IPO)
D) Strategic Alliance

Question

Quizplus · Accepted Answer

An Initial Public Offering (IPO) is a harvest option where a private company goes public by selling shares to the general public. This requires the company to meet certain financial and reporting requirements, which can put pressure on the leadership team to focus on short-term profits and performance results in order to attract investors and get a high valuation for their shares. This can lead to a shift away from long-term strategic planning and decision-making.

Which Harvest Option Can Force a Leadership Team to Focus