Question 1

In a family business, the family's primary function it to ensure the profitability and survival of the business.

Accepted Answer

A) True 
 B)False

Question 2

In Stage IV of leadership succession, the functional stage, the successor enters full-time employment.

Accepted Answer

A) True 
 B)False

Question 3

The following are characteristics of the family except

Accepted Answer

A)  competition is valued 
B)  a unit that balances relationships 
C)  perpetuates traditions 
D)  is characterized by unity 
A)  competition is valued 
B)  a unit that balances relationships 
C)  perpetuates traditions 
D)  is characterized by unity

Question 4

A major weakness of a family business is that it has greater difficulty than a nonfamily business in focusing on long-run decision making.

Accepted Answer

A) True 
 B)False

Question 5

A family retreat is designed to

Accepted Answer

A)  bring family members together to openly discuss business matters. 
B)  focus on business matters while avoiding extensive communication. 
C)  control the lines of communication. 
D)  announce the latest policy decisions. 
A)  bring family members together to openly discuss business matters. 
B)  focus on business matters while avoiding extensive communication. 
C)  control the lines of communication. 
D)  announce the latest policy decisions.

Question 6

One advantage of a family business is that there is no need to separate the business interests from the family interests.

Accepted Answer

A) True 
 B)False

Question 7

While running a family business, a couple is experiencing a strain on family relationships. Which of the following might be the most likely cause of the tension?

Accepted Answer

A)  The wife holds the top position in the firm. 
B)  The husband started the business. 
C)  The roles of both parties are carefully defined. 
D)  They have a difference of opinion about a business matter. 
A)  The wife holds the top position in the firm. 
B)  The husband started the business. 
C)  The roles of both parties are carefully defined. 
D)  They have a difference of opinion about a business matter.

Question 8

A parent might attempt to resolve a transfer of ownership by giving active children in the firm's management _____ stock and giving nonactive children _____ stock.

Accepted Answer

A)  distributed, undistributed 
B)  growth, speculative 
C)  common, preferred 
D)  dowry, canonical 
A)  distributed, undistributed 
B)  growth, speculative 
C)  common, preferred 
D)  dowry, canonical

Question 9

Explain the concept of family and business overlap in a family business.

Accepted Answer

Although the family and the business are

Question 10

To protect the interests of both the family and the business in a family business, the owner should

Accepted Answer

A)  recognize a basic obligation to supply the family with jobs of some type. 
B)  refuse to hire family members but, instead, reward them with dividends. 
C)  keep management simple by personally making all personnel decisions affecting family members. 
D)  identify the positions, if any, that are reserved for members of the family. 
A)  recognize a basic obligation to supply the family with jobs of some type. 
B)  refuse to hire family members but, instead, reward them with dividends. 
C)  keep management simple by personally making all personnel decisions affecting family members. 
D)  identify the positions, if any, that are reserved for members of the family.

In a family business, the family's primary function it to ensure the profitability and survival of the business.

In Stage IV of leadership succession, the functional stage, the successor enters full-time employment.

The following are characteristics of the family except

A major weakness of a family business is that it has greater difficulty than a nonfamily business in focusing on long-run decision making.

A family retreat is designed to

One advantage of a family business is that there is no need to separate the business interests from the family interests.

While running a family business, a couple is experiencing a strain on family relationships. Which of the following might be the most likely cause of the tension?

A parent might attempt to resolve a transfer of ownership by giving active children in the firm's management _ stock and giving nonactive children _ stock.

Explain the concept of family and business overlap in a family business.

To protect the interests of both the family and the business in a family business, the owner should

The Entrepreneurial Life

Entrepreneurial Integrity and Ethics

Getting Started

Franchises and Buyouts

The Business Plan: Visualizing the Dream

The Marketing Plan

The Human Resources Plan: Managers, Owners, Allies, and Directors

The Location Plan

Understanding a Firms Financial Statements

Forecasting Financial Requirements

A Firms Sources of Financing

Planning for the Harvest

Building Customer Relationships

Product and Supply Chain Management

Pricing and Credit Decisions

Promotional Planning

Global Opportunities for Small Business

Professional Management in the Entrepreneurial Firm

Managing Human Resources

Managing Operations

Managing the Firms Assets

Managing Risk in the Small Business

Filters

Exam 5: The Family Business

In a family business, the family's primary function it to ensure the profitability and survival of the business.

In Stage IV of leadership succession, the functional stage, the successor enters full-time employment.

The following are characteristics of the family except

A major weakness of a family business is that it has greater difficulty than a nonfamily business in focusing on long-run decision making.

A family retreat is designed to

One advantage of a family business is that there is no need to separate the business interests from the family interests.

While running a family business, a couple is experiencing a strain on family relationships. Which of the following might be the most likely cause of the tension?

A parent might attempt to resolve a transfer of ownership by giving active children in the firm's management _____ stock and giving nonactive children _____ stock.

Explain the concept of family and business overlap in a family business.

To protect the interests of both the family and the business in a family business, the owner should

The Entrepreneurial Life

Entrepreneurial Integrity and Ethics

Getting Started

Franchises and Buyouts

The Business Plan: Visualizing the Dream

The Marketing Plan

The Human Resources Plan: Managers, Owners, Allies, and Directors

The Location Plan

Understanding a Firms Financial Statements

Forecasting Financial Requirements

A Firms Sources of Financing

Planning for the Harvest

Building Customer Relationships

Product and Supply Chain Management

Pricing and Credit Decisions

Promotional Planning

Global Opportunities for Small Business

Professional Management in the Entrepreneurial Firm

Managing Human Resources

Managing Operations

Managing the Firms Assets

Managing Risk in the Small Business

Filters

A parent might attempt to resolve a transfer of ownership by giving active children in the firm's management _ stock and giving nonactive children _ stock.