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
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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text: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 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

Step 1
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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