Final answer:
The three broad choices for an exit strategy are Sell, merge, or close. Mergers can help in business growth and expansion but may also present challenges and are subject to antitrust laws. Other strategies for growth and operational adjustments include production changes, facility management, and workforce adjustments.
Step-by-step explanation:
The three broad choices for an exit strategy are A) Sell, merge, or close. Selling a business can provide the owner with a lump sum payment, merging may offer the advantage of creating a larger, more competitive company, and closing, although less desirable, is an option if the business is not viable or the owner wants to retire without selling or passing on the company.
Mergers are significant in the context of business growth and expansion, as they can lead to larger size, efficiency, acquisition of new product lines, competitive advantage, or a change in corporate identity. However, mergers can also present challenges such as management clashes and the potential for undermining long-term profitability due to strategic mistakes. In this light, acquisitions and mergers are closely monitored and sometimes regulated by antitrust laws to maintain competitive markets.
Aside from mergers and acquisitions, firms have various other strategies to grow and adjust their operations. These include expanding or reducing production, opening or closing facilities, hiring or laying off workers, and starting or stopping the sales of products.