Question 1

Describe the legal concerns over family business succession, citing the Oakland Scavenger Company case.

Accepted Answer

Traditions of succession practices in pr

Question 2

Which of the following statements regarding communication after the sale is true?

Accepted Answer

A) Communication should end at least 10 days prior to signing a buy agreement. 
B) Communication is a key step between the seller and the buyer and between the buyer and the current management personnel. 
C) Continued communication through the transition to new ownership is not critical. 
D) Communication should end at the time the buy agreement is signed. 
A) Communication should end at least 10 days prior to signing a buy agreement. 
B) Communication is a key step between the seller and the buyer and between the buyer and the current management personnel. 
C) Continued communication through the transition to new ownership is not critical. 
D) Communication should end at the time the buy agreement is signed.

Question 3

An exit strategy is defined as that component of the business plan where an entrepreneur describes a method by which investors can realize a tangible return on their investment.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following is not a contextual aspect to be considered in an effective succession plan?

Accepted Answer

A) time 
B) managerial ability 
C) entrepreneurial vision 
D) cost 
A) time 
B) managerial ability 
C) entrepreneurial vision 
D) cost

Question 5

A type of successor who is high in ingenuity, creativity, and drive would be considered a(n) _____ successor.

Accepted Answer

A) managerial 
B) entrepreneurial 
C) opportunistic 
D) innovative 
A) managerial 
B) entrepreneurial 
C) opportunistic 
D) innovative

Question 6

Which of the following is not a suggestion a tax accountant or lawyer might make concerning tax reduction?

Accepted Answer

A) Place real estate in a separate corporation. 
B) Increase management's salaries and fringe benefits. 
C) Establish a leasing subsidiary. 
D) Give some or all of the owner's shares to heirs. 
A) Place real estate in a separate corporation. 
B) Increase management's salaries and fringe benefits. 
C) Establish a leasing subsidiary. 
D) Give some or all of the owner's shares to heirs.

Question 7

Only 10 percent of all privately held enterprises make it to a third generation.

Accepted Answer

A) True 
 B)False

Question 8

The steps in developing a succession strategy are understanding the contextual aspects, identifying successor qualities, and developing a written succession plan.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following statements about the characteristics that successors should possess is true?

Accepted Answer

A) There are only a few characteristics needed. 
B) Situation does not matter. 
C) Knowledge of the firm is not a desirable characteristic or quality. 
D) Some characteristics will be more important than others, depending on the situation. 
A) There are only a few characteristics needed. 
B) Situation does not matter. 
C) Knowledge of the firm is not a desirable characteristic or quality. 
D) Some characteristics will be more important than others, depending on the situation.

Question 10

Bill and James Raymond have worked for their father's company for 15 years. Their father, who is president and now plans to retire, wants his sons jointly to take over the company. Bill and James have never agreed on anything. Should their father try another succession plan?

Accepted Answer

For the sake of the company, another suc

Question 11

Which of the following is not a step in developing a succession strategy?

Accepted Answer

A) Identify successor qualities. 
B) Develop a written succession plan. 
C) Undertaking forcing events. 
D) Understand contextual aspects. 
A) Identify successor qualities. 
B) Develop a written succession plan. 
C) Undertaking forcing events. 
D) Understand contextual aspects.

Question 12

Which of the following would not be a participant at a due diligence meeting?

Accepted Answer

A) management representatives 
B) company counsel 
C) SEC staff 
D) underwriters 
A) management representatives 
B) company counsel 
C) SEC staff 
D) underwriters

Question 13

A type of successor who is interested in efficiency, internal control, and effective use of resources would be considered a(n) _____ successor.

Accepted Answer

A) managerial 
B) entrepreneurial 
C) opportunistic 
D) family 
A) managerial 
B) entrepreneurial 
C) opportunistic 
D) family

Question 14

The extent of overlap between the family and business systems does not vary from family business to family business.

Accepted Answer

A) True 
 B)False

Question 15

One of the most recent legal challenges to management succession came from the _____ case.

Accepted Answer

A) Anderson Manufacturing Corporation 
B) Johnson Brothers 
C) Oakland Scavenger Company 
D) Willy & Willy Inc. 
A) Anderson Manufacturing Corporation 
B) Johnson Brothers 
C) Oakland Scavenger Company 
D) Willy & Willy Inc.

Question 16

An entrepreneurial successor is someone who

Accepted Answer

A) is ingenious, creative, and driven. 
B) is loyal. 
C) has a profit orientation. 
D) has an administrative orientation. 
A) is ingenious, creative, and driven. 
B) is loyal. 
C) has a profit orientation. 
D) has an administrative orientation.

Question 17

A harvest plan defines how and when owners and investors will realize an actual cash return on their investment.

Accepted Answer

A) True 
 B)False

Question 18

Sometimes a successor is needed because the business environment changes and a parallel change is needed at the top.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following is not an example of pressures or interests from within a firm that affect succession issues?

Accepted Answer

A) rivalry among various branches of the family 
B) pressure from a family member to start his or her own business 
C) employee wanting a percentage of the business in the owner's will 
D) pressure on the owner/manager to designate an heir 
A) rivalry among various branches of the family 
B) pressure from a family member to start his or her own business 
C) employee wanting a percentage of the business in the owner's will 
D) pressure on the owner/manager to designate an heir

Question 20

The managerial successor typically is not interested in

Accepted Answer

A) efficiency. 
B) internal control. 
C) effective use of resources. 
D) creativity. 
A) efficiency. 
B) internal control. 
C) effective use of resources. 
D) creativity.

Describe the legal concerns over family business succession, citing the Oakland Scavenger Company case.

Which of the following statements regarding communication after the sale is true?

An exit strategy is defined as that component of the business plan where an entrepreneur describes a method by which investors can realize a tangible return on their investment.

Which of the following is not a contextual aspect to be considered in an effective succession plan?

A type of successor who is high in ingenuity, creativity, and drive would be considered a(n) _____ successor.

Which of the following is not a suggestion a tax accountant or lawyer might make concerning tax reduction?

Only 10 percent of all privately held enterprises make it to a third generation.

The steps in developing a succession strategy are understanding the contextual aspects, identifying successor qualities, and developing a written succession plan.

Which of the following statements about the characteristics that successors should possess is true?

Bill and James Raymond have worked for their father's company for 15 years. Their father, who is president and now plans to retire, wants his sons jointly to take over the company. Bill and James have never agreed on anything. Should their father try another succession plan?

Which of the following is not a step in developing a succession strategy?

Which of the following would not be a participant at a due diligence meeting?

A type of successor who is interested in efficiency, internal control, and effective use of resources would be considered a(n) _____ successor.

The extent of overlap between the family and business systems does not vary from family business to family business.

One of the most recent legal challenges to management succession came from the _____ case.

An entrepreneurial successor is someone who

A harvest plan defines how and when owners and investors will realize an actual cash return on their investment.

Sometimes a successor is needed because the business environment changes and a parallel change is needed at the top.

Which of the following is not an example of pressures or interests from within a firm that affect succession issues?

The managerial successor typically is not interested in

Entrepreneurship Evolutionary Development--Revolutionary Impact

The Entrepreneurial Mind-Set in Individuals: Cognition and Ethics

The Entrepreneurial Mind-Set in Organizations: Corporate Entrepreneurship

Social Entrepreneurship and the Global Environment for Entrepreneurship

Innovation: the Creative Pursuit of Ideas

Assessment of Entrepreneurial Opportunities

Pathways to Entrepreneurial Ventures

Sources of Capital for Entrepreneurial Ventures

Legal Challenges for Entrepreneurial Ventures

Marketing Research for Entrepreneurial Ventures

Financial Preparation for Entrepreneurial Ventures

Developing an Effective Business Plan

Strategic Entrepreneurial Growth

Valuation of Entrepreneurial Ventures

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Exam 15: Harvesting Entrepreneurial Ventures

Describe the legal concerns over family business succession, citing the Oakland Scavenger Company case.

Which of the following statements regarding communication after the sale is true?

An exit strategy is defined as that component of the business plan where an entrepreneur describes a method by which investors can realize a tangible return on their investment.

Which of the following is not a contextual aspect to be considered in an effective succession plan?

A type of successor who is high in ingenuity, creativity, and drive would be considered a(n) _____ successor.

Which of the following is not a suggestion a tax accountant or lawyer might make concerning tax reduction?

Only 10 percent of all privately held enterprises make it to a third generation.

The steps in developing a succession strategy are understanding the contextual aspects, identifying successor qualities, and developing a written succession plan.

Which of the following statements about the characteristics that successors should possess is true?

Bill and James Raymond have worked for their father's company for 15 years. Their father, who is president and now plans to retire, wants his sons jointly to take over the company. Bill and James have never agreed on anything. Should their father try another succession plan?

Which of the following is not a step in developing a succession strategy?

Which of the following would not be a participant at a due diligence meeting?

A type of successor who is interested in efficiency, internal control, and effective use of resources would be considered a(n) _____ successor.

The extent of overlap between the family and business systems does not vary from family business to family business.

One of the most recent legal challenges to management succession came from the _____ case.

An entrepreneurial successor is someone who

A harvest plan defines how and when owners and investors will realize an actual cash return on their investment.

Sometimes a successor is needed because the business environment changes and a parallel change is needed at the top.

Which of the following is not an example of pressures or interests from within a firm that affect succession issues?

The managerial successor typically is not interested in

Entrepreneurship Evolutionary Development--Revolutionary Impact

The Entrepreneurial Mind-Set in Individuals: Cognition and Ethics

The Entrepreneurial Mind-Set in Organizations: Corporate Entrepreneurship

Social Entrepreneurship and the Global Environment for Entrepreneurship

Innovation: the Creative Pursuit of Ideas

Assessment of Entrepreneurial Opportunities

Pathways to Entrepreneurial Ventures

Sources of Capital for Entrepreneurial Ventures

Legal Challenges for Entrepreneurial Ventures

Marketing Research for Entrepreneurial Ventures

Financial Preparation for Entrepreneurial Ventures

Developing an Effective Business Plan

Strategic Entrepreneurial Growth

Valuation of Entrepreneurial Ventures

Filters