Question

This is an exit strategy when an entrepreneur sells his or her company to its managers

Answer 1

Answer:

The statement is True.

Explanation:

Entrepreneurs are the highly motivated, innovative, great minds with new and fresh ideas, who set up their own business. They usually start their business at a small level and gradually increase it with the passage of time. They are responsible for the profits and losses of the business that they have established. If their business is not doing according to their expectations, then they sell their running business to the managers or other members of their company. This is considered to be the exit strategy for them to minimize the possible losses. This is again a wise decision indeed.

Answer 2

This is an exit strategy when an entrepreneur sells his or her company to its managers a management buyout. Management buyout, MBO, is defined as a transaction where a company's management team will purchase assets and operations within the business that they manage. The can purchase from within their organization or from other parent company's. This technique gives the person/company a shortcut to having more financial freedom.