Question 1

Working for another company to broaden their training and background helps justify moving family members into the family business at a higher level.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following situations should copreneurs avoid?

Accepted Answer

A)  Agreeing to disagree on several business issues 
B)  Ignoring business conflicts in an attempt to save the relationship 
C)  Setting aside time for the family and sticking to it 
D)  Defining each person's role and accentuating each other's talents 
A)  Agreeing to disagree on several business issues 
B)  Ignoring business conflicts in an attempt to save the relationship 
C)  Setting aside time for the family and sticking to it 
D)  Defining each person's role and accentuating each other's talents

Question 3

Which of the following steps should a family-owned business take to compensate family members?

Accepted Answer

A)  Every relative who wishes to work for the business should be hired. 
B)  Family members should be financially rewarded on the basis of their position in the family. 
C)  A managerial title should be offered to motivate a productive family member. 
D)  Relatives should be offered positions according to their status in the family. 
A)  Every relative who wishes to work for the business should be hired. 
B)  Family members should be financially rewarded on the basis of their position in the family. 
C)  A managerial title should be offered to motivate a productive family member. 
D)  Relatives should be offered positions according to their status in the family.

Question 4

How can children be prepared to enter the family-owned business?

Accepted Answer

A)  Allow them to work in senior management positions and make important decisions. 
B)  Give them a permanent leadership position in the business. 
C)  Promote them rapidly in the business out of turn. 
D)  Let them work for another company to gain experience. 
A)  Allow them to work in senior management positions and make important decisions. 
B)  Give them a permanent leadership position in the business. 
C)  Promote them rapidly in the business out of turn. 
D)  Let them work for another company to gain experience.

Question 5

The high turnover rate of top-notch nonfamily managers and employees may be due to incompetent family members.

Accepted Answer

A) True 
 B)False

Question 6

Family-owned businesses need an appropriate mission statement to cope with the demands of business operation.

Accepted Answer

A) True 
 B)False

Question 7

In the context of a family-owned business, which of the following is a disadvantage of a living trust?

Accepted Answer

A)  The business goes to the designated heirs without going through probate court. 
B)  Property can be put into the trust while the owner is alive. 
C)  The ownership still remains with the owner after transferring the title to the trust. 
D)  The title on real estate and securities must be changed to the name of the trust. 
A)  The business goes to the designated heirs without going through probate court. 
B)  Property can be put into the trust while the owner is alive. 
C)  The ownership still remains with the owner after transferring the title to the trust. 
D)  The title on real estate and securities must be changed to the name of the trust.

Question 8

Family-owned business entrepreneurs usually make good general managers.

Accepted Answer

A) True 
 B)False

Question 9

According to the Family Firm Institute of Boston, family-owned businesses have a high mortality rate primarily because:

Accepted Answer

A)  there is little personal satisfaction. 
B)  they are too large. 
C)  family members lose interest. 
D)  the estate taxes are high. 
A)  there is little personal satisfaction. 
B)  they are too large. 
C)  family members lose interest. 
D)  the estate taxes are high.

Question 10

When success leads a family-owned business into the second generation, younger relatives begin to lose interest in job titles.

Accepted Answer

A) True 
 B)False

Working for another company to broaden their training and background helps justify moving family members into the family business at a higher level.

Which of the following situations should copreneurs avoid?

Which of the following steps should a family-owned business take to compensate family members?

How can children be prepared to enter the family-owned business?

The high turnover rate of top-notch nonfamily managers and employees may be due to incompetent family members.

Family-owned businesses need an appropriate mission statement to cope with the demands of business operation.

In the context of a family-owned business, which of the following is a disadvantage of a living trust?

Family-owned business entrepreneurs usually make good general managers.

According to the Family Firm Institute of Boston, family-owned businesses have a high mortality rate primarily because:

When success leads a family-owned business into the second generation, younger relatives begin to lose interest in job titles.

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

Exam 2: Family-Owned Businesses

Working for another company to broaden their training and background helps justify moving family members into the family business at a higher level.

Which of the following situations should copreneurs avoid?

Which of the following steps should a family-owned business take to compensate family members?

How can children be prepared to enter the family-owned business?

The high turnover rate of top-notch nonfamily managers and employees may be due to incompetent family members.

Family-owned businesses need an appropriate mission statement to cope with the demands of business operation.

In the context of a family-owned business, which of the following is a disadvantage of a living trust?

Family-owned business entrepreneurs usually make good general managers.

According to the Family Firm Institute of Boston, family-owned businesses have a high mortality rate primarily because:

When success leads a family-owned business into the second generation, younger relatives begin to lose interest in job titles.

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