The availability of exit options is an important determinant of the appeal of the firm to
A) suppliers.
B) investors.
C) the employees of the company.
D) the management of the company.

Question

Quizplus · Accepted Answer

Investors are the ones who are interested in exit options as they want to know how and when they can sell their stake in the company if they need to. The availability of exit options affects the investment decisions of potential investors and, thus, the appeal of the firm to them.

The Availability of Exit Options Is an Important Determinant of the Appeal