Question 1

In a small family business, management succession planning can start late.

Accepted Answer

A) True 
 B)False  False

Question 2

A limitation of a small family-owned business is that a family manager may:

Accepted Answer

A)  refuse to hire family members who want to enter the business. 
B)  lack general management skills, being proficient in a specific activity. 
C)  ignore top family members when a matter needs to be cleared. 
D)  guard against letting past successes lead to trying to maintain the status quo. 
A)  refuse to hire family members who want to enter the business. 
B)  lack general management skills, being proficient in a specific activity. 
C)  ignore top family members when a matter needs to be cleared. 
D)  guard against letting past successes lead to trying to maintain the status quo. B

Question 3

In order to prepare children to take over the family-owned business, it is essential to hire them for higher-level positions in the business.

Accepted Answer

A) True 
 B)False  False

Question 4

Daughters interested in leading the family business should gain experience by working outside.

Accepted Answer

A) True 
 B)False

Question 5

A family limited partnership allows business owners to:

Accepted Answer

A)  choose people who could be considered owners of the business in their absence. 
B)  remain part of the ownership group when the business is sold. 
C)  pass assets to heirs with a minimum of income and estate tax costs while retaining control of assets during their lifetime. 
D)  name a family member as the successor when the business is up for sale. 
A)  choose people who could be considered owners of the business in their absence. 
B)  remain part of the ownership group when the business is sold. 
C)  pass assets to heirs with a minimum of income and estate tax costs while retaining control of assets during their lifetime. 
D)  name a family member as the successor when the business is up for sale.

Question 6

Due to their inexperience, children must be excluded when making important decisions and setting goals for a family-owned business.

Accepted Answer

A) True 
 B)False

Question 7

A(n) _____ resembles a will, but, in addition to providing for distributing personal assets on the maker's death, it also contains instructions for managing those assets, should a person become disabled.

Accepted Answer

A)  living trust 
B)  promissory note 
C)  white paper 
D)  attestation 
A)  living trust 
B)  promissory note 
C)  white paper 
D)  attestation

Question 8

_____ refer(s) to family-owned businesses run by husband-and-wife teams.

Accepted Answer

A)  Angel investors 
B)  Intrapreneurs 
C)  Copreneurs 
D)  Strategic alliances 
A)  Angel investors 
B)  Intrapreneurs 
C)  Copreneurs 
D)  Strategic alliances

Question 9

If you were a working mother, why would you prefer to establish a home-based business instead of looking for a corporate position?

Accepted Answer

In our "family-friendly" business enviro

Question 10

How can family members working in a family-owned business be compensated?

Accepted Answer

Compensating family members and dividing

Question 11

Family-owned businesses run so smoothly that there is rarely any conflict among family members.

Accepted Answer

A) True 
 B)False

Question 12

What causes conflicts in a family-owned business?

Accepted Answer

Family businesses are the backbone of Am

Question 13

A buy-sell agreement provides for the corporation to buy back a shareholder's stock when he/she leaves the company.

Accepted Answer

A) True 
 B)False

Question 14

The attitudes of incompetent relatives working in a family-owned business can be changed by formal or informal education.

Accepted Answer

A) True 
 B)False

Question 15

A _____ provides for a corporation to repurchase a shareholder's stock when he/she leaves the company.

Accepted Answer

A)  living trust 
B)  buy-sell agreement 
C)  family limited partnership 
D)  recovery fund 
A)  living trust 
B)  buy-sell agreement 
C)  family limited partnership 
D)  recovery fund

Question 16

Explain how a small family business owner must deal with incompetent family members working in the business.

Accepted Answer

Some family members want to become the h

Question 17

A recent trend in the operation of a family business is that of retired parents wanting to buy their children's business.

Accepted Answer

A) True 
 B)False

Question 18

An advantage of selling a family-owned business to outsiders is that:

Accepted Answer

A)  the former owner receives an assured income. 
B)  it provides a constant source of income to all the family members. 
C)  the stature of the family is maintained. 
D)  the owner assumes more responsibility with resultant happiness. 
A)  the former owner receives an assured income. 
B)  it provides a constant source of income to all the family members. 
C)  the stature of the family is maintained. 
D)  the owner assumes more responsibility with resultant happiness.

Question 19

What are the benefits of selling a family business to family members and the benefits of selling the business to outsiders?

Accepted Answer

Selling to family members: Business stay

Question 20

Deferred profit-sharing plans may be used to placate dissatisfied family members in a family-owned business-if deserved.

Accepted Answer

A) True 
 B)False

In a small family business, management succession planning can start late.

A limitation of a small family-owned business is that a family manager may:

In order to prepare children to take over the family-owned business, it is essential to hire them for higher-level positions in the business.

Daughters interested in leading the family business should gain experience by working outside.

A family limited partnership allows business owners to:

Due to their inexperience, children must be excluded when making important decisions and setting goals for a family-owned business.

A(n) _____ resembles a will, but, in addition to providing for distributing personal assets on the maker's death, it also contains instructions for managing those assets, should a person become disabled.

_____ refer(s) to family-owned businesses run by husband-and-wife teams.

If you were a working mother, why would you prefer to establish a home-based business instead of looking for a corporate position?

How can family members working in a family-owned business be compensated?

Family-owned businesses run so smoothly that there is rarely any conflict among family members.

What causes conflicts in a family-owned business?

A buy-sell agreement provides for the corporation to buy back a shareholder's stock when he/she leaves the company.

The attitudes of incompetent relatives working in a family-owned business can be changed by formal or informal education.

A _____ provides for a corporation to repurchase a shareholder's stock when he/she leaves the company.

Explain how a small family business owner must deal with incompetent family members working in the business.

A recent trend in the operation of a family business is that of retired parents wanting to buy their children's business.

An advantage of selling a family-owned business to outsiders is that:

What are the benefits of selling a family business to family members and the benefits of selling the business to outsiders?

Deferred profit-sharing plans may be used to placate dissatisfied family members in a family-owned business-if deserved.

Starting Your Small Business

Forms of Ownership of Small Businesses

Maintaining Good Government Relations and Business Ethics

Becoming the Owner of a Small Business

Planning, Organizing, and Managing a Small Business

How to Obtain the Right Financing for Your Business

Developing Marketing Strategies

Promoting and Distributing

How to Obtain and Manage Human Resources and Diversity in Small Companies

How to Maintain Relationships With Your Employees and Their Representatives

Obtaining and Laying Out Operating Facilities

Purchasing, Inventory, and Quality Control

Basic Financial Planning

Budgeting and Controlling Operations and Taxes

Using Computer Technology in Small Businesses

Risk Management, Insurance, and Crime Prevention

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Exam 2: Family-Owned Businesses

In a small family business, management succession planning can start late.

A limitation of a small family-owned business is that a family manager may:

In order to prepare children to take over the family-owned business, it is essential to hire them for higher-level positions in the business.

Daughters interested in leading the family business should gain experience by working outside.

A family limited partnership allows business owners to:

Due to their inexperience, children must be excluded when making important decisions and setting goals for a family-owned business.

A(n) _____ resembles a will, but, in addition to providing for distributing personal assets on the maker's death, it also contains instructions for managing those assets, should a person become disabled.

_____ refer(s) to family-owned businesses run by husband-and-wife teams.

If you were a working mother, why would you prefer to establish a home-based business instead of looking for a corporate position?

How can family members working in a family-owned business be compensated?

Family-owned businesses run so smoothly that there is rarely any conflict among family members.

What causes conflicts in a family-owned business?

A buy-sell agreement provides for the corporation to buy back a shareholder's stock when he/she leaves the company.

The attitudes of incompetent relatives working in a family-owned business can be changed by formal or informal education.

A _____ provides for a corporation to repurchase a shareholder's stock when he/she leaves the company.

Explain how a small family business owner must deal with incompetent family members working in the business.

A recent trend in the operation of a family business is that of retired parents wanting to buy their children's business.

An advantage of selling a family-owned business to outsiders is that:

What are the benefits of selling a family business to family members and the benefits of selling the business to outsiders?

Deferred profit-sharing plans may be used to placate dissatisfied family members in a family-owned business-if deserved.

Starting Your Small Business

Forms of Ownership of Small Businesses

Maintaining Good Government Relations and Business Ethics

Becoming the Owner of a Small Business

Planning, Organizing, and Managing a Small Business

How to Obtain the Right Financing for Your Business

Developing Marketing Strategies

Promoting and Distributing

How to Obtain and Manage Human Resources and Diversity in Small Companies

How to Maintain Relationships With Your Employees and Their Representatives

Obtaining and Laying Out Operating Facilities

Purchasing, Inventory, and Quality Control

Basic Financial Planning

Budgeting and Controlling Operations and Taxes

Using Computer Technology in Small Businesses

Risk Management, Insurance, and Crime Prevention

Filters