1. After operating for 10 years, Zipcar, earlier this year (2013), was bought for $500 million by Avis, a leader in the car rental industry. With the acquisition of Zipcar, Avis will now surpass its direct competitors, Hertz and Enterprise.The deal is expected to be finalized in spring of this year, and it will add between $50 million and $70 million in annual synergies. This would best be described as:

Question

Question 1 options:

a.sale to a financial buyer.

b.sale to a strategic buyer.

c.an IPO

d.distributing the cash flows

2.Richard keeps things small at his company, takes out a big salary and a large bonus each year, and issues a special class of shares that only he owns that gives him ten times the dividends the other shareholders receive. It would appear Richard is following which harvesting strategy?
Question 2 options:

a.sale to employees

b.sales to financial buyers

c.an IPO

d.distributing the firms cash flows

3.Potbelly Sandwich Works LLC is preparing to go public. Potbelly Corporation (Nasdaq: PBPB) filed a registration with the U.S. Securities and Exchange Commission. The proposed maximum offering price is $75 million. The company plans to list on the Nasdaq Global Select market under the ticker, "PBPB."The offering is being made through BofA Merrill Lynch, Goldman, Sachs and Co., Baird, William Blair, and Piper Jaffray. Potbelly is using which method of harvesting?.
Question 3 options:

a.an IPO

b.a sale to a strategic buyer

c.a bust-up LBO

d.distribution of cash flows

4.In January 2013,a group of investors acquired Happy Greetings, a producer of greeting cards, for $80 million, of which only $1 million was rumored to have been contributed by the investors. What best describes what strategy Happy Greetings participated in?
Question 4 options:

a.a bust-up LBO

b.a leveraged buyout

c.an IPO

d.a build-up LBO