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Who benefits from a business having an exit strategy?

A) Only the seller(s)

B) Only the buyer(s)

C) Both the seller(s) and buyer(s)

D) Neither the seller(s) nor the buyer(s)

User Gurzo
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1 Answer

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Final answer:

Both sellers and buyers benefit from a business having an exit strategy, as it aids in investment recoupment, smooth ownership transitions, and can mitigate negative economic impacts.

Step-by-step explanation:

The question of who benefits from a business having an exit strategy is a pertinent one. In a model of perfectly competitive firms, an exit strategy is crucial for both the seller(s) and the buyer(s). Sellers benefit from an exit strategy as it provides a clear plan for recouping investments and minimizing losses when a business is no longer profitable. Buyers benefit as the exit strategy can ensure a smooth transition of ownership and operation, which is essential for the continuity and success of a business acquisition. Moreover, an exit strategy can benefit employees and the economy by potentially reducing the negative impacts of a business closure.

User Jgosar
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