Question 1

A family limited partnership resembles a will and contains instructions for managing personal assets.

Accepted Answer

A) True 
 B)False

Question 2

What are the advantages and disadvantages of organizing a family-owned business into a corporation?

Accepted Answer

Some families organize their businesses

Question 3

Employees find themselves treated less fairly in a family-owned business that is organized into a corporation.

Accepted Answer

A) True 
 B)False

Question 4

Managers of family-owned businesses must agree to hire any family member who wants to join the business.

Accepted Answer

A) True 
 B)False

Question 5

A(n) _____ is a document that contains instructions about what should be done with the family-owned business if the owner suddenly dies or becomes incapacitated.

Accepted Answer

A)  bequest 
B)  will 
C)  instrument 
D)  claim 
A)  bequest 
B)  will 
C)  instrument 
D)  claim

Question 6

Expansion for small family-owned businesses may be limited by:

Accepted Answer

A)  the size of the family. 
B)  low motivation level of employees. 
C)  the amount of family assets available. 
D)  the retirement age of the owner. 
A)  the size of the family. 
B)  low motivation level of employees. 
C)  the amount of family assets available. 
D)  the retirement age of the owner.

Question 7

As the leader of a family-owned business grows older, he/she must guard against depending on past successes.

Accepted Answer

A) True 
 B)False

Question 8

Discuss the different ways in which estate taxes can be minimized.

Accepted Answer

Estate taxes can be minimized using fami

Question 9

When the choice of replacements is limited in a family-owned business, the owner may broaden a manager's job specification in order to utilize him/her effectively.

Accepted Answer

A) True 
 B)False

Question 10

How can family business owners prepare their children to manage the business?

Accepted Answer

Often, children raised in a small busine

Question 11

In order to learn to manage a family-owned business, a family member should be given true responsibility.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following is an advantage of hiring professional managers to run family-owned businesses?

Accepted Answer

A)  More employment opportunities for family members 
B)  Retained "personal touch" 
C)  Fair treatment of employees 
D)  Concentration of power in small cliques 
A)  More employment opportunities for family members 
B)  Retained "personal touch" 
C)  Fair treatment of employees 
D)  Concentration of power in small cliques

Question 13

According to the Family Firm Institute of Boston, a majority of family-owned businesses close down due to high estate taxes.

Accepted Answer

A) True 
 B)False

Question 14

Describe how a family-owned business may prepare for management succession in case the owner departs suddenly.

Accepted Answer

A successful business must continue to o

Question 15

A number of entrepreneurs are turning to formal succession plans for their family-owned businesses to:

Accepted Answer

A)  ensure they get proper returns on their investment. 
B)  allow themselves to go on a short leave. 
C)  prevent endless disputes over ownership between their heirs. 
D)  devote time to face-to-face teaching and training. 
A)  ensure they get proper returns on their investment. 
B)  allow themselves to go on a short leave. 
C)  prevent endless disputes over ownership between their heirs. 
D)  devote time to face-to-face teaching and training.

Question 16

How can copreneurs efficiently manage their family-owned business?

Accepted Answer

A)  Keep personal issues aside while holding business arguments. 
B)  Let one spouse work for the other as an employee. 
C)  Make major decisions independently, without having to consult the other, 
D)  Spend more time tending to the business and less time in personal matters. 
A)  Keep personal issues aside while holding business arguments. 
B)  Let one spouse work for the other as an employee. 
C)  Make major decisions independently, without having to consult the other, 
D)  Spend more time tending to the business and less time in personal matters.

Question 17

Incompetent family members working in a family-owned business may be handled by placing them in jobs which involve frequent interaction with other employees.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following is an advantage of selling a family-owned business to family members?

Accepted Answer

A)  Fewer family members are hired in the business. 
B)  The former owner has to take some responsibility toward the business. 
C)  Family bonds are strengthened and additional friction is reduced. 
D)  The former owner still owns the business until retirement. 
A)  Fewer family members are hired in the business. 
B)  The former owner has to take some responsibility toward the business. 
C)  Family bonds are strengthened and additional friction is reduced. 
D)  The former owner still owns the business until retirement.

Question 19

Conflicts are likely to arise in a small family-owned business when:

Accepted Answer

A)  each family member has a different perspective, leading to dissension. 
B)  a family member is clearly in command, at least in a given area of management. 
C)  the role of each family member is distinct, based on sound business practices. 
D)  family members agree to disagree and set ground rules. 
A)  each family member has a different perspective, leading to dissension. 
B)  a family member is clearly in command, at least in a given area of management. 
C)  the role of each family member is distinct, based on sound business practices. 
D)  family members agree to disagree and set ground rules.

Question 20

A home-based business is an attractive option for working mothers because:

Accepted Answer

A)  most corporations encourage telecommuting. 
B)  there has been a decrease in job sharing. 
C)  many companies are adopting flextime. 
D)  daycare services are relatively inexpensive. 
A)  most corporations encourage telecommuting. 
B)  there has been a decrease in job sharing. 
C)  many companies are adopting flextime. 
D)  daycare services are relatively inexpensive.

A family limited partnership resembles a will and contains instructions for managing personal assets.

What are the advantages and disadvantages of organizing a family-owned business into a corporation?

Employees find themselves treated less fairly in a family-owned business that is organized into a corporation.

Managers of family-owned businesses must agree to hire any family member who wants to join the business.

A(n) _____ is a document that contains instructions about what should be done with the family-owned business if the owner suddenly dies or becomes incapacitated.

Expansion for small family-owned businesses may be limited by:

As the leader of a family-owned business grows older, he/she must guard against depending on past successes.

Discuss the different ways in which estate taxes can be minimized.

When the choice of replacements is limited in a family-owned business, the owner may broaden a manager's job specification in order to utilize him/her effectively.

How can family business owners prepare their children to manage the business?

In order to learn to manage a family-owned business, a family member should be given true responsibility.

Which of the following is an advantage of hiring professional managers to run family-owned businesses?

According to the Family Firm Institute of Boston, a majority of family-owned businesses close down due to high estate taxes.

Describe how a family-owned business may prepare for management succession in case the owner departs suddenly.

A number of entrepreneurs are turning to formal succession plans for their family-owned businesses to:

How can copreneurs efficiently manage their family-owned business?

Incompetent family members working in a family-owned business may be handled by placing them in jobs which involve frequent interaction with other employees.

Which of the following is an advantage of selling a family-owned business to family members?

Conflicts are likely to arise in a small family-owned business when:

A home-based business is an attractive option for working mothers because:

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

A family limited partnership resembles a will and contains instructions for managing personal assets.

What are the advantages and disadvantages of organizing a family-owned business into a corporation?

Employees find themselves treated less fairly in a family-owned business that is organized into a corporation.

Managers of family-owned businesses must agree to hire any family member who wants to join the business.

A(n) _____ is a document that contains instructions about what should be done with the family-owned business if the owner suddenly dies or becomes incapacitated.

Expansion for small family-owned businesses may be limited by:

As the leader of a family-owned business grows older, he/she must guard against depending on past successes.

Discuss the different ways in which estate taxes can be minimized.

When the choice of replacements is limited in a family-owned business, the owner may broaden a manager's job specification in order to utilize him/her effectively.

How can family business owners prepare their children to manage the business?

In order to learn to manage a family-owned business, a family member should be given true responsibility.

Which of the following is an advantage of hiring professional managers to run family-owned businesses?

According to the Family Firm Institute of Boston, a majority of family-owned businesses close down due to high estate taxes.

Describe how a family-owned business may prepare for management succession in case the owner departs suddenly.

A number of entrepreneurs are turning to formal succession plans for their family-owned businesses to:

How can copreneurs efficiently manage their family-owned business?

Incompetent family members working in a family-owned business may be handled by placing them in jobs which involve frequent interaction with other employees.

Which of the following is an advantage of selling a family-owned business to family members?

Conflicts are likely to arise in a small family-owned business when:

A home-based business is an attractive option for working mothers because:

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