Entrepreneurs who are planning to retire often use two strategies:
A) sell to outsiders or arrange for an IPO.
B) assume the role of a silent partner or sell to nonfamily insiders.
C) sell to outsiders or sell to nonfamily insiders.
D) sell to outsiders or sell to relatives.

Question

Quizplus · Accepted Answer

Entrepreneurs who are planning to retire often prefer to sell to outsiders or sell to nonfamily insiders. Selling to outsiders could result in a higher purchase price and selling to nonfamily insiders could ensure that the business remains in good hands with someone who already understands the company's operations. Selling to relatives could result in familial feuds and cause a rift within the family. Assuming the role of a silent partner could limit an entrepreneur's control over the business and deny them the opportunity to enjoy their retirement. IPOs are not a common strategy for small business owners who are planning to retire.

Entrepreneurs Who Are Planning to Retire Often Use Two Strategies