Question 1

Which chapter of bankruptcy is used by family farming businesses?

Accepted Answer

A)  7
B)  11
C)  12
D)  13

Question 2

The key starting point for any decision to exit or harvest a firm is

Accepted Answer

A)  establishing the valuation of the firm.
B)  devising plans for turnaround.
C)  filing for Chapter 7 bankruptcy.
D)  reaching a resolution with creditors to accept an amount less than the full payment.

Question 3

It should be clear that a single universal method of valuation is needed when considering the purchase of a private company.

Accepted Answer

A) True 
 B)False

Question 4

Asset valuation is typically the highest business valuation number that one calculates, unless the business is asset-intensive.

Accepted Answer

A) True 
 B)False

Question 5

A(n)________ is an option for high-growth businesses to sell their stock as a public entity in the public equities market.

Accepted Answer

initial pu...

Question 6

A small business owner may want to exit the business because

Accepted Answer

A)  the business has done very well but the future does not hold the same potential for similar success.
B)  all the assets are in the business.
C)  other opportunities are available.
D)  all of these.

Question 7

Chapter 7 bankruptcy is intended for entrepreneurial firms with limited debts and assets.

Accepted Answer

A) True 
 B)False

Question 8

Chapter 12 and Chapter 13 bankruptcies are used by what kinds of businesses that cannot be turned around?

Accepted Answer

A)  S and C corporations
B)  Limited liability corporations
C)  Partnerships and limited liability partnerships
D)  Family-owned businesses and sole proprietors

Question 9

The time to begin to think of harvesting the business is

Accepted Answer

A)  at the beginning.
B)  after the first quarter of operations.
C)  at the break-even part.
D)  when there are no more alternatives.

Question 10

________ is a relatively straightforward valuation system that uses the industry in which a start-up operates.

Accepted Answer

A)  Asset-based valuation
B)  Market estimation valuation
C)  Price/earnings valuation
D)  Discounted future net cash flow

Question 11

Valuing a business is as much ________ as it is ________.

Accepted Answer

A)  monetary; assets
B)  art; assets
C)  art; science
D)  monetary; science

Question 12

Once a decision has been made to sell a business, what choice is available to the small business owner?

Accepted Answer

A)  Sell the business intact to a third party
B)  Sell the business to a competitor
C)  Do an initial public offering
D)  All of these

Question 13

When a small business owner is no longer interested in the company, it is time for an exit strategy.

Accepted Answer

A) True 
 B)False

Question 14

Chapter 13 bankruptcy is used for sole proprietorships.

Accepted Answer

A) True 
 B)False

Question 15

A business owner who is facing multiple problems that are causing the business to decline may choose to attempt a(n)________ to reverse the decline and improve performance.

Accepted Answer

The answer of A business owner who is facing multiple...

Question 16

Which chapter of bankruptcy provides for selling a business's assets?

Accepted Answer

A)  7
B)  11
C)  12
D)  13

Question 17

Chapter 17 bankruptcy allows a firm to be reorganized.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following is the effort to reverse the decline of a business?

Accepted Answer

A)  Turnaround
B)  Quick time
C)  Fast around
D)  Bridge

Question 19

When a firm files a ________ bankruptcy, it receives immediate protection against all lawsuits and other efforts to collect from the firm.

Accepted Answer

A)  Subchapter S
B)  Subchapter C
C)  Chapter 7
D)  Chapter 11

Question 20

Which of the following statements is true of the fast-track version of Chapter 11 bankruptcy?

Accepted Answer

A)  It shows how back taxes will be brought current over a five-year period.
B)  It shows how unsecured creditors will be paid first.
C)  It gives creditors far more control than in a larger organization Chapter 11 filing.
D)  It is used if a firm's debts are more than $3 million.

Exam 13: Exit-Harvest-Turnaround

Chapter 7 bankruptcy is intended for entrepreneurial firms with limited debts and assets.

Correct AnswerverifiedShow Answer

Valuing a business is as much ________ as it is ________.

Correct AnswerverifiedShow Answer

It should be clear that a single universal method of valuation is needed when considering the purchase of a private company.

Correct AnswerverifiedShow Answer

Asset valuation is typically the highest business valuation number that one calculates, unless the business is asset-intensive.

Correct AnswerverifiedShow Answer

When a small business owner is no longer interested in the company, it is time for an exit strategy.

Correct AnswerverifiedShow Answer

________ is a relatively straightforward valuation system that uses the industry in which a start-up operates.

Correct AnswerverifiedShow Answer

Which of the following statements is true of the fast-track version of Chapter 11 bankruptcy?

Correct AnswerverifiedShow Answer

Chapter 12 and Chapter 13 bankruptcies are used by what kinds of businesses that cannot be turned around?

Correct AnswerverifiedShow Answer

Which chapter of bankruptcy provides for selling a business's assets?

Correct AnswerverifiedShow Answer

A business owner who is facing multiple problems that are causing the business to decline may choose to attempt a(n)________ to reverse the decline and improve performance.

Correct AnswerverifiedShow Answer

Chapter 13 bankruptcy is used for sole proprietorships.

Correct AnswerverifiedShow Answer

The key starting point for any decision to exit or harvest a firm is

Correct AnswerverifiedShow Answer

Chapter 17 bankruptcy allows a firm to be reorganized.

Correct AnswerverifiedShow Answer

A small business owner may want to exit the business because

Correct AnswerverifiedShow Answer

The time to begin to think of harvesting the business is

Correct AnswerverifiedShow Answer

Once a decision has been made to sell a business, what choice is available to the small business owner?

Correct AnswerverifiedShow Answer

A(n)________ is an option for high-growth businesses to sell their stock as a public entity in the public equities market.

Correct Answerverifiedinitial pu...View AnswerShow Answer

When a firm files a ________ bankruptcy, it receives immediate protection against all lawsuits and other efforts to collect from the firm.

Correct AnswerverifiedShow Answer

Which of the following is the effort to reverse the decline of a business?

Correct AnswerverifiedShow Answer

Which chapter of bankruptcy is used by family farming businesses?

Correct AnswerverifiedShow Answer

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