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plz help! An entrepreneur is ready for early retirement, and she sells the venture to its employees, who borrow funds against the venture's future profits
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An entrepreneur is ready for early retirement, and she sells the venture to its employees, who borrow funds against the venture's future profits and buy the owner's shares over time. As the loan is repaid and more shares of the owner's stock are purchased, they are allocated to the employees' individual retirement accounts. This is an example of a/an Management buyout Leveraged buyout Employee stock option plan Direct sale Question 7 ( 0.5 points) All of the following are potential reasons a venture might decide the time is right to go public, EXCEPT: The stock market conditions are currently quite favorable, and the initial offering price of the venture's stock would probably be as high now as it could be under any potential market conditions in the near future There is an immediate need for additional capital, and if the firm were to wait a few years to go public, the same percentage of equity would need to be given up to raise the same amount of funds The current owners believe the venture has potential to grow significantly in the next few years and are not currently feeling pressure to have more liquidity The venture's current sales and growth rates are presently high enough for an underwriting firm to agree to manage the public offering Step by Step Solution
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