Start learning →

What is a disadvantage of seller financing for the selling party?

AIt pays interest to the managers
BIt cannot sell the firm again
CIt waits long for cash after exit
DIt must hire a private equity fund
Answer & Solution
Correct answer: C. It waits long for cash after exit
Payment arrives over later years, after the seller has already lost control.
Practise this question with Quill — CA Final →

Keep practising Corporate Spin-Off

Browse all Corporate Spin-Off questions for CA Final, or explore more Strategicfinancialmanagement topics.

Start a Corporate Spin-Off lesson →
Related questions