Startup Exit Strategies

Description: This quiz covers various startup exit strategies, including acquisition, initial public offering (IPO), secondary offering, and more.
Number of Questions: 15
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Tags: startups entrepreneurship exit strategies
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Which exit strategy involves selling a startup to another company?

  1. Acquisition

  2. Initial Public Offering (IPO)

  3. Secondary Offering

  4. Management Buyout (MBO)


Correct Option: A
Explanation:

Acquisition is an exit strategy where a startup is sold to another company, often a larger one in the same industry.

What is the process of a private company offering shares to the public for the first time called?

  1. Acquisition

  2. Initial Public Offering (IPO)

  3. Secondary Offering

  4. Management Buyout (MBO)


Correct Option: B
Explanation:

An initial public offering (IPO) is the process by which a private company offers shares to the public for the first time.

Which exit strategy involves selling shares of a company that has already gone public?

  1. Acquisition

  2. Initial Public Offering (IPO)

  3. Secondary Offering

  4. Management Buyout (MBO)


Correct Option: C
Explanation:

A secondary offering is an exit strategy where shares of a company that has already gone public are sold to the public.

What is the process of a company's management team buying out the company from its shareholders called?

  1. Acquisition

  2. Initial Public Offering (IPO)

  3. Secondary Offering

  4. Management Buyout (MBO)


Correct Option: D
Explanation:

A management buyout (MBO) is the process of a company's management team buying out the company from its shareholders.

Which exit strategy involves a company merging with another company?

  1. Acquisition

  2. Initial Public Offering (IPO)

  3. Secondary Offering

  4. Merger


Correct Option: D
Explanation:

A merger is an exit strategy where a company merges with another company, often a larger one in the same industry.

What is the process of a company liquidating its assets and distributing the proceeds to its shareholders called?

  1. Acquisition

  2. Initial Public Offering (IPO)

  3. Secondary Offering

  4. Liquidation


Correct Option: D
Explanation:

Liquidation is the process of a company liquidating its assets and distributing the proceeds to its shareholders.

Which exit strategy involves a company selling its assets to another company?

  1. Acquisition

  2. Initial Public Offering (IPO)

  3. Secondary Offering

  4. Asset Sale


Correct Option: D
Explanation:

An asset sale is an exit strategy where a company sells its assets to another company.

What is the process of a company selling its intellectual property (IP) to another company called?

  1. Acquisition

  2. Initial Public Offering (IPO)

  3. Secondary Offering

  4. IP Sale


Correct Option: D
Explanation:

An IP sale is the process of a company selling its intellectual property (IP) to another company.

Which exit strategy involves a company shutting down its operations and ceasing to exist?

  1. Acquisition

  2. Initial Public Offering (IPO)

  3. Secondary Offering

  4. Shutdown


Correct Option: D
Explanation:

A shutdown is an exit strategy where a company shuts down its operations and ceases to exist.

What is the process of a company going bankrupt and having its assets sold off to pay its creditors called?

  1. Acquisition

  2. Initial Public Offering (IPO)

  3. Secondary Offering

  4. Bankruptcy


Correct Option: D
Explanation:

Bankruptcy is the process of a company going bankrupt and having its assets sold off to pay its creditors.

Which exit strategy involves a company being taken private by its founders or investors?

  1. Acquisition

  2. Initial Public Offering (IPO)

  3. Secondary Offering

  4. Going Private


Correct Option: D
Explanation:

Going private is an exit strategy where a company is taken private by its founders or investors.

What is the process of a company selling a portion of its business to another company called?

  1. Acquisition

  2. Initial Public Offering (IPO)

  3. Secondary Offering

  4. Spin-Off


Correct Option: D
Explanation:

A spin-off is the process of a company selling a portion of its business to another company.

Which exit strategy involves a company selling its shares to a group of private investors?

  1. Acquisition

  2. Initial Public Offering (IPO)

  3. Secondary Offering

  4. Private Placement


Correct Option: D
Explanation:

A private placement is an exit strategy where a company sells its shares to a group of private investors.

What is the process of a company selling its shares to its employees called?

  1. Acquisition

  2. Initial Public Offering (IPO)

  3. Secondary Offering

  4. Employee Stock Ownership Plan (ESOP)


Correct Option: D
Explanation:

An employee stock ownership plan (ESOP) is the process of a company selling its shares to its employees.

Which exit strategy involves a company selling its shares to a special purpose acquisition company (SPAC)?

  1. Acquisition

  2. Initial Public Offering (IPO)

  3. Secondary Offering

  4. SPAC Merger


Correct Option: D
Explanation:

A SPAC merger is an exit strategy where a company sells its shares to a special purpose acquisition company (SPAC).

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