At what stage of starting and running your business should you inform investors of your exit strategy? It should be ________.
A) in the business plan
B) in your first annual report
C) when you are ready to exit the business
D) the years sales peak

Question

Quizplus · Accepted Answer

Investors will want to know what the potential return on their investment will be in the long run, so it is important to include your exit strategy in your business plan from the beginning. This way, they will be aware of your intentions and can make an informed decision about investing in your company. Waiting until you are ready to exit the business may be too late, as investors may want to have a say in the process and may require time to prepare for the sale or transition. Including the exit strategy in the first annual report or only at the year's sales peak would not be sufficient or timely.

At What Stage of Starting and Running Your Business Should