Exam 5: The Family Business

Mayer's philosophy of never using debt to finance operations or expansion was born during the Great Depression and passed on to his sons when they joined the family business. Today, the multi-million-dollar organization proudly follows Mayer's practice under the leadership of Mayer's great-grandsons and -daughters. This family's commitment is based on

In a family business, the family's focus is on emphasizing all of the following EXCEPT

Some family businesses benefit from effective collaboration among brothers and sisters.

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

Research has shown that family-owned businesses tend to devote extra attention to succession planning.

Chip and Dale are brothers who have taken over their father's business. This type of family business is known as a(n)

Match the term to its definition. -Nonfinancial factors in a family firm that affect the commitment of family members to the business

Which of the following is a negative of family businesses?

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 a fear of

Match the term to its definition. -Couples who own and manage businesses

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

Ideally, the entrepreneur and his or her spouse who is not active in the family business

One of the first steps experts recommend for building a healthy family-to-business relationship is to hold a family retreat.

A family business involving two or more children may experience either sibling cooperation or sibling rivalry.

Bob and his sister Betty are co-owners of their late parents' business. Bob actively manages the business; Betty supplies capital from her inheritance but does not work in the business. They squabble over the distribution of profits from the business. Bob likely sees his sister as a _____, whereas Betty views her brother as a(n) _____.

A family retreat is designed to

The leader of a family-owned enterprise might decide to bring in a nonfamily member as an executive with the firm for which of the following reasons?

In considering the role of younger family members, the best philosophy is to recognize that

Explain the role of the entrepreneur's spouse as it affects a family business.

The idea behind _____ is that gains and losses in nonfinancial characteristics of the relationship between the family and the business affect strategic and policy decisions regarding the company.