Question

After successfully operating for five years, Tina plans to sell her computer service center. Which of the following would be Tina's main financial management need as she exits the business through sale? Building her wealth and conserving assets Obtaining increasing amounts of cash inflows Conserving the money that the business has Optimizing capital structure for profits

Answer 1

Answer:

Optimizing capital structure for profits

Explanation:

When an entrepreneur wants to sell her business to another small business or a larger company, she should try to maximize the value of their current business. A way to do this is by optimizing the business's capital structure (e.g. lower the debt to capital ratio). Tina will be able to sell her business at a higher cost and the new owner will have a healthier and potentially more profitable business to run.