In which of the following ways can you not take money out of your company? Selling the company to employees Releasing the firm's free cash flows when not making a profit Leveraged buy-out Strategic acquisition

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Question 23 (1 point)
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In which of the following ways can you not take money out of your company?
Selling the company to employees
Releasing the firm's free cash flows when not making a profit
Leveraged buy-out
O Strategic acquisition
Transcribed Image Text:Question 23 (1 point) V Saved In which of the following ways can you not take money out of your company? Selling the company to employees Releasing the firm's free cash flows when not making a profit Leveraged buy-out O Strategic acquisition
Question 11 (1 point)
Saved
Which marketing approach is the best out of the following?
Focus on marketing to resellers like Walmart
Focus on product features
O A sales directed approach (focusing on how much sales revenue the produc
bring in)
A customer focused approach
Transcribed Image Text:Question 11 (1 point) Saved Which marketing approach is the best out of the following? Focus on marketing to resellers like Walmart Focus on product features O A sales directed approach (focusing on how much sales revenue the produc bring in) A customer focused approach
Expert Solution
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Ques 23 - Ways you cannot take money out of your company:

  • Selling the company to employees is done by issuing an ESOP.
  • Free cash flow (FCF) represents the cash available for the company to repay creditors or pay dividends and interest to investors.
  • Free Cash Flow (FCF) is an important financial metric because it represents the actual amount of cash at a company’s disposal.
  • Strategic Acquisition usually occurs because one company thinks it can benefit from synergies.
  • A leveraged buyout is the acquisition of another company using a significant amount of borrowed money (bonds or loans) to meet the cost of acquisition. 

 

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