Exam 5: The Family 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 had a fear of

Match the term to its definition. -A business in third and subsequent generations, when children of the siblings take ownership and management positions

Which of the following statements about family councils is true?

A family retreat formalizes the participation of the family in the business to a greater extent than a family council does.

When an in-law joins a company, effective collaboration may be achieved by assigning family members to different branches or roles within the company.

"The more you can do, the more is expected of you." Josh already had his hands full managing just one of his father's retail stores. He didn't doubt his ability to do well managing an entire region, but still he was reluctant to accept the assignment. He likely has a fear of

Research has shown that the biggest concern expressed by owners of family businesses about retaining family management is the fear there will be a lack of innovation on the part of successors.

Jan and Jill started a business 20 years ago. Jill recently stepped down and her daughter Jenny has agreed to start managing the company with Jan's help. The eventual goal is for Jenny to run the entire company. This process between Jan and Jenny is called

Of all the relationships in a family business, the _____ relationship has been recognized for generations as the most troublesome.

A key responsibility of a younger generation member who desires advancement is to understand that a leadership position in the company is earned and not an entitlement.

To protect the interests of both the family and the business in a family business, the owner should

Match the term to its definition. -Passing ownership of a family business to the next generation

Match the term to its definition. -An informal gathering of family members, usually at a remote location, to discuss family business matters

Fran and Bob (who are married) own and manage a cleaning service. A potential advantage of this arrangement is that

In a family business, the interests of the family and the interests of the business are best described as

Living above the workshop made it easy to involve the children in the daily business decisions. The children knew from the time they could write they were expected to work in and eventually manage and own the business. This family's commitment to the business is based on

Match the term to its definition. -A group of people bound by a shared history and a commitment to share a future together, while supporting the development and well-being of individual members

To ensure the success of a family business retreat, David Lansky, CEO of a family business consulting firm, suggests that which of the following guidelines be followed?

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

Kinder's Deli has been in business for three generations. A place was found for every Kinder child to work in the shop. The name "Kinder" meant "fine deli meats." This family's commitment is based on