Exam 15: Harvesting the Entrepreneurial Venture

When the founder of a business is willing to share authority, succession problems can be maximized.

When selling a business all of the following is good advice except:

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

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

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

Timing considerations generally do not impact decisions to sell a business because triggering events are unanticipated.

There are two types of succession pressures: family and nonfamily.

Although family members may not play an active role in the business, they still may want to inherit part of the business.

It is not necessary for the entrepreneur to seek outside advice when liquidating the firm.

Nonfamily members sometimes bring pressure on the owner-manager in an effort to protect their personal interests.

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 over the others?

Barriers to successful succession planning, discussed in the text, include which of the following?

The Oakland Scavenger case is profound to owners of family businesses in that

A typical example of a forcing event is

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

Depending on the situation, some qualities or characteristics a successor should possess are more important than others.

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

Once the decision is made to harvest the business, the way forward is easy.

Which of the following is a True statement about the characteristics that successors should possess?

The president of a successful lumberyard has decided to retire in a year. There are two relatives working in the lumberyard who want to take over, but have little business knowledge. The president wants to keep the company in family hands. What should be done so the company stays in the family?