Question

This exit strategy allows the entrepreneur an opportunity to buy back venture capital stock at cost and an additional premium. a. buyback b. retract clause c. IPO d. exit clause

Answer 1

Answer:

A. Buyback

Explanation:

The exit strategy that provides the entrepreneur an opportunity to purchase back venture capital stock at cost and an additional premium is a Buyback

A buyback is when an entrepreneur buys its own shares in the stock market. It is a repurchase and minimizes/decreases the number of shares outstanding, which causes earnings per share to be inflated and, in many cases, the stock value also.