Exam 15: Harvesting Entrepreneurial Ventures

Nepotism policies are lawful unless they have an "adverse impact" on women or minority groups (as in the Oakland Scavenger Company case).

One advantage of an early entry strategy for the younger generation succeeding the older generation of a family business is that

The entrepreneur who has to choose a successor with potential to develop the attributes necessary to run the business should consider which of the following aspects of the potential successor over the others?

A managerial successor provides the critical ideas for new-product development and future ventures.

Besides the eight steps in the harvest strategy, what other implications should the entrepreneur be aware of when selling out?

One advantage of the delayed entry strategy for the younger generation succeeding the older generation of a family business is that

An important issue in the Oakland Scavenger Company case was that of whether nonfamily members should be allowed to be successors in family businesses.

A harvest plan

The liquidity event can be achieved through an initial public offering (IPO) or complete sale of the venture.

"Harvest" does not mean that

Once an entrepreneur decides to "harvest" the business, their challenges and responsibilities are over.

What are the three critical steps in developing a succession strategy in a family business?

Which of the following is a source of pressure outside the family that could prove troublesome?

Under U.S. law, which of the following is the first step in the initial public offering (IPO) process?

Promotion from within is

Which of the following is an influencing factor in succession?

External environmental factors do not have any effect on the succession issue.

Succession pressure inside the firm exists

Which of the following steps should be carried out second when deciding to sell a business?

Happenings that cause the replacement of the owner/manager of a family business are called