Exam 5: The Family Business

The recruiter from IBM made William an offer almost too good to be true.The problem was William's dad, who always expected William to join him in running the family business.William's difficulty in accepting either offer may be based on the fear of:

John and his brother Jack started a produce farm 20 years ago and are thinking about retirement.Over time, their children have worked at the farm and so the cousins have started talking about taking over management.At present, this produce farm is an example of ____.

Brandon always came in second - in birth order, in school and sports and in his father's heart.When his older brother decided not to take over the family business as expected, Brandon was paralysed with fear.This paralysis was likely based on:

In a family business, the interests of the family and the interests of the business are best described as:

Bret first opened his hardware store in 1946.His sons took over when Bret retired, and now Bret's grandchildren run the store.This type of family business is known as:

________, the act of employing relatives, is often associated with favouritism.​

Senior management will be more receptive to the junior generation advancing if the junior generation:

A company run by the great grandchildren of the founder would be considered to be managed by a cousin consortium.

Sibling rivalry in a family business:

Non-family employees in a family business may be caught in the crossfire between feuding family members.

Allan opened a hot dog stand in Cape Town CBD.He owns it and operates it six days a week, year round.What kind of business is this?

Explain the role of the entrepreneur's spouse as it affects a family business and show how it can be made most effective if the spouse does not have an active part of daily operations.

Which statement is true concerning using available family talent in the succession plan?

What could a founder do to make a succession plan successful? Using the Three-Circle Model of Family Businesses, identify issues the founder should discuss with each group.

Which statement is the most correct about in-laws and possible complications in a family business?

A benefit of strong family relationships is the greater willingness of family members to:

Chip and Dale are brothers who have taken over their father's business.This type of family business is known as:

When a senior generation member is planning for succession, planning should encompass family members, employees and the owners.

Even if family members lack the capability to run the business, an entrepreneur should always select a successor from this pool of talent.

The family endured great hardships together in the old country but vowed they would always watch out for each other in South Africa.Together they built a thriving business; it was the Muellers against the world.This family's commitment is based on: