Question

Which of the following is true of financial management for a business exit?

a. Its main emphasis is on conserving what little cash the business has.
b. Its main emphasis is on increasing amounts of cash inflows to pay for added inventory, productive assets, and employees.
c. Its main emphasis is on maximizing the value of the business for successors.
d. Its main emphasis is to obtain increasing amounts of cash inflows to pay for added inventory.

Answer 1

C) Its main emphasis is on maximizing the value of the business for successors.

Step-by-step explanation:

When an entrepreneur wants to sell his business to another small business or a larger company, they should try to maximize the value of their current business since the entrepreneur will be able to sell it at a higher cost and the new owner will have a healthier and potentially more profitable business to run.