Question 1

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

Accepted Answer

A) True 
 B)False  True

Question 2

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

Accepted Answer

A) True 
 B)False  False

Question 3

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

Accepted Answer

A) True 
 B)False  True

Question 4

Research on family firms demonstrates which of the following facts?

Accepted Answer

A) only 16 percent make it to a third generation 
B) many family firms cease to exist after one month 
C) only nine out of ten make it to a second generation 
D) only 3 percent make it to the next generation 
A) only 16 percent make it to a third generation 
B) many family firms cease to exist after one month 
C) only nine out of ten make it to a second generation 
D) only 3 percent make it to the next generation

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

"Harvest" does not mean

Accepted Answer

A) family members agree about the business. 
B) that any profits will be reaped. 
C) that the firm continues to exist. 
D) the challenges and responsibilities of the entrepreneur are over. 
A) family members agree about the business. 
B) that any profits will be reaped. 
C) that the firm continues to exist. 
D) the challenges and responsibilities of the entrepreneur are over.

Question 7

Succession pressure inside the firm exists

Accepted Answer

A) when the founder wants to give up authority. 
B) when family members want to keep and manage the business. 
C) nonfamily employees don't want the business. 
D) competition-is hurting the business. 
A) when the founder wants to give up authority. 
B) when family members want to keep and manage the business. 
C) nonfamily employees don't want the business. 
D) competition-is hurting the business.

Question 8

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

Accepted Answer

A) Publicize the offer to sell. 
B) Value the business. 
C) Finalize the prospective buyers. 
D) Time the sale appropriately. 
A) Publicize the offer to sell. 
B) Value the business. 
C) Finalize the prospective buyers. 
D) Time the sale appropriately.

Question 9

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

Accepted Answer

A) managerial successor. 
B) entrepreneurial successor. 
C) opportunistic successor. 
D) all of the above. 
A) managerial successor. 
B) entrepreneurial successor. 
C) opportunistic successor. 
D) all of the above.

Question 10

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.

Accepted Answer

A) True 
 B)False

Question 11

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 12

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

Accepted Answer

Traditions of succession practices in pr

Question 13

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?

Accepted Answer

The best thing the president could do to

Question 14

The average life expectancy of a privately held firm is

Accepted Answer

A) 24 years. 
B) 10 years. 
C) and indefinite number of years. 
D) 50 years. 
A) 24 years. 
B) 10 years. 
C) and indefinite number of years. 
D) 50 years.

Question 15

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

Accepted Answer

A) True 
 B)False

Question 16

A harvest plan

Accepted Answer

A) is similar to a will. 
B) defines when and how business owners will realize a cash return on investment. 
C) leaves the business to the next generation. 
D) is simple to implement. 
A) is similar to a will. 
B) defines when and how business owners will realize a cash return on investment. 
C) leaves the business to the next generation. 
D) is simple to implement.

Question 17

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

Accepted Answer

A) technology 
B) time 
C) environmental factors 
D) type of venture 
A) technology 
B) time 
C) environmental factors 
D) type of venture

Question 18

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

Accepted Answer

A) normal mistakes are viewed as incompetence. 
B) perspective of the environment is broadened. 
C) successor's skills are judged with more objectivity. 
D) skills specifically required by the business are developed. 
A) normal mistakes are viewed as incompetence. 
B) perspective of the environment is broadened. 
C) successor's skills are judged with more objectivity. 
D) skills specifically required by the business are developed.

Question 19

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

Accepted Answer

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

Question 20

What are the four critical steps to consider in developing a succession strategy in a family business?

Accepted Answer

The four critical steps to consider are

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

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

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

Research on family firms demonstrates which of the following facts?

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

"Harvest" does not mean

Succession pressure inside the firm exists

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

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

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.

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.

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

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?

The average life expectancy of a privately held firm is

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

A harvest plan

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

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

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

What are the four critical steps to consider in developing a succession strategy in a family business?

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 Entrepreneurs

Legal Challenges of Entrepreneurial Ventures

Marketing Challenges 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 the Entrepreneurial Venture

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

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

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

Research on family firms demonstrates which of the following facts?

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

"Harvest" does not mean

Succession pressure inside the firm exists

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

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

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.

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.

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

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?

The average life expectancy of a privately held firm is

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

A harvest plan

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

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

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

What are the four critical steps to consider in developing a succession strategy in a family business?

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 Entrepreneurs

Legal Challenges of Entrepreneurial Ventures

Marketing Challenges for Entrepreneurial Ventures

Financial Preparation for Entrepreneurial Ventures

Developing an Effective Business Plan

Strategic Entrepreneurial Growth

Valuation of Entrepreneurial Ventures

Filters