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Small Business Ch 13
Small Business Management Ch 13
| Question | Answer |
|---|---|
| Build-Up LBO | A leveraged buyout involving the purchase of group a similar companies with the intent of making the firms into one larger company. |
| Bust-Up LBO | A leveraged buyout involving the purchase of company with the intent of selling off its assets. |
| Double Taxation | Taxation of income that occurs twice, first as corporate earnings and then as stockholder dividends. |
| Employee Stock Ownership Plan (ESOP) | A method by which a firm is sold either in part or in total to its employees. |
| Harvesting (Exiting) | The process used by entrepreneurs and investors to reap the value of a business when they leave it. |
| Initial Public Offering (IPO) | The first sale of share of a company's stock to the public. |
| Leveraged Buyout (LBO) | A purchase heavily financed with debt, where the future cash flow of the target company is expected to be sufficient to meet debt repayments. |
| Leveraged (ESOP) | An employee stock ownership plan that is financed with borrowed money. |
| Management Buyout (MBO) | A leveraged buyout in which the firm's top managers become significant shareholders in the acquired firm. |
| Opportunity Cost of Funds | The rate of return that could be earned on another investment of similar risk. |
| Seller Financing | Financing in which the seller accepts a note from a buyer in lieu of cash in partial payment for a business. |