Exam 5: The Family Business

After college graduation,Terrence was expected to begin working in the family business but instead he continued to lead the playboy life,always postponing his decision about working for his father.Terrence probably has a fear of:

Steve,Harry,and Chris,who own and operate a family auto parts store,are experiencing tough times during a downturn in the local economy.To help the store survive these conditions,the brothers agree to each take a 25 percent reduction in salary for a one-year period.This decision:

Jim,the founder of a family business specializing in real estate,is contemplating turning the business over to his five children.One possibility,the founder believes,is to divide ownership equally among the children.This action would:

Even if family members lack the capability to run the business,an entrepreneur should always select a successor from this pool of talent.

A family council is most effective when:

Bella decided to hire a nonfamily member as her successor instead of selecting one of her children.What might explain her decision?

Family retreats,which open lines of communication,

Sibling rivalry in a family business:

In preparing for succession,the senior generation has certain responsibilities.One of these is that:

The family endured great hardships together in the old country but vowed they would always watch out for each other in America.Together they built a thriving business;it was the Muellers against the world.This family's commitment is based on:

________,the act of employing relatives,is often associated with favoritism.​

Husband-wife teams that own a business are popularly referred to as co-preneurs.

While recent surveys show that a majority of owners of family-owned businesses want to keep the business in the family,owners think their main obstacle to doing so is their family's desire to run the business.

Betsy had always had decisions made for her,first by her parents and then by her husband.So when her father asked her to take over the family business,she was afraid of:

In the family business,family considerations affect only members of the family.

A company run by the great grandchildren of the founder would be considered to be managed by a cousin consortium.

Explain the role of the entrepreneur's spouse as it affects a family business and show how it can be made most effective if the spouse does not have an active part of daily operations.

From the children's standpoint,one common reason that they may be reluctant to join the family firm is a desire to

Brandon always came in second--in birth order,in school and sports,and in his father's heart.When his older brother decided not to take over the family business as expected,Brandon was paralyzed with fear.This paralysis was likely based on:

Discuss guidelines for a successful family business retreat.