What are the three "outside" exit transfer methods?

The choice that identifies the three "outside" exit transfer methods correctly recognizes the strategic options available for business owners looking to transition out of their businesses.

A sale to a third party involves transferring business ownership to an entirely new entity or individual, which is a common method as it often involves maximizing the company's value through market competition. Recapitalization allows owners to restructure the business's capital structure, which can provide an immediate benefit or cash flow while keeping the business operational, making it a viable exit strategy. Lastly, orderly liquidation is when the business’s assets are sold off in a planned manner, typically to ensure maximum value is retained from the individual assets, and this process represents a clear departure from the business by the owner.

These methods are all external to the current ownership structure of the business. In contrast, other choices include strategies that may involve current partners or employees, which do not fit the criteria of "outside" since they keep the existing relationships intact to some degree. This distinction is essential for understanding the approaches available for exit planning in a way that aligns with both the owner's goals and the potential market for the business.