Exam 15: Harvesting the Entrepreneurial Venture

When looking ahead in choosing a successor from inside the organization, the founder often trains a team of executive managers consisting of both family and nonfamily members.

The textbook identifies which of the following as a key aspect to be considered in an effective succession?

Research on family firms demonstrates which of the following facts?

The liquidity event stands for positioning the venture for the realization of a cash return for the owners and investors.

The prospectus for an initial public offering (IPO) must disclose fully all pertinent information about a company and must present a fair representation of the firm's True prospects.

"Harvest" does not mean

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

An entrepreneurial successor is someone who is interested in efficiency and the effective use of resources.

The harvest decision may come when the venture has grown to a stage where an IPO is a possibility.

The Oakland Scavenger case may have a major effect on the management succession plans of family business.

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

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

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

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

One of the most recent legal challenges to management succession has charged

Which of the following is an event that would require an entrepreneur to step aside and let someone else direct the operation?

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

Loss of ownership control is often attributable to one of the Four Ds: disability, death, dissolution, and debtorship.

The forcing events that require an entrepreneur to step aside and let someone direct the operation are usually unforeseen and create major problems for the business.

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