Question 1

In a grantor-retained annuity trust (GRAT),

Accepted Answer

A)  there is an attempt to minimize taxes on a family by creating two classes of stock-preferred stock, whose value is locked in, and common stock, whose value reflects the market value of the business. 
B)  a business owner can pass on up to $10,000 annually which is exempt from federal gift taxes. 
C)  the grantor retains the voting power and interest income from the stock in the trust for up to ten years before the business goes to the beneficiaries. 
D)  the surviving owner or heir of a family business has the right to purchase the stock of the deceased owner at a price established by a predetermined formula. 
A)  there is an attempt to minimize taxes on a family by creating two classes of stock-preferred stock, whose value is locked in, and common stock, whose value reflects the market value of the business. 
B)  a business owner can pass on up to $10,000 annually which is exempt from federal gift taxes. 
C)  the grantor retains the voting power and interest income from the stock in the trust for up to ten years before the business goes to the beneficiaries. 
D)  the surviving owner or heir of a family business has the right to purchase the stock of the deceased owner at a price established by a predetermined formula.

Question 2

A ________ is the process by which a company determines the duties and the nature of the jobs to be filled and the skills and experience required of the people who are to fill them.

Accepted Answer

A)  job analysis 
B)  job description 
C)  job specification 
D)  management audit 
A)  job analysis 
B)  job description 
C)  job specification 
D)  management audit

Question 3

More than ________ percent of all companies in the world are family owned.

Accepted Answer

A)  40 
B)  60 
C)  80 
D)  90 
A)  40 
B)  60 
C)  80 
D)  90

Question 4

One of the best sources for prospects for new positions may come from:

Accepted Answer

A)  colleges and universities. 
B)  the Internet. 
C)  current employees. 
D)  employment advertisements. 
A)  colleges and universities. 
B)  the Internet. 
C)  current employees. 
D)  employment advertisements.

Question 5

Having a solid management succession plan in place, well before retirement is near, is absolutely critical.

Accepted Answer

A) True 
 B)False

Question 6

A business founder relying on a lifetime gifting strategy to minimize the taxes on the estate she is passing on to her son can give him a maximum gift of ________ in company stock each year, tax exempt.

Accepted Answer

A)  $6,000 
B)  $13,000 
C)  $18,000 
D)  $24,000 
A)  $6,000 
B)  $13,000 
C)  $18,000 
D)  $24,000

Question 7

The job specification outlines the duties and responsibilities of a job and its working conditions, while the job description outlines the characteristics-skills, education, experience-a person needs to fill a job.

Accepted Answer

A) True 
 B)False

Question 8

By linking employees' compensation directly to the company's financial performance, a business owner increases the likelihood that workers will achieve performance targets that are in their best interest and in the company's best interest.

Accepted Answer

A) True 
 B)False

In a grantor-retained annuity trust (GRAT),

A ________ is the process by which a company determines the duties and the nature of the jobs to be filled and the skills and experience required of the people who are to fill them.

More than ________ percent of all companies in the world are family owned.

One of the best sources for prospects for new positions may come from:

Having a solid management succession plan in place, well before retirement is near, is absolutely critical.

A business founder relying on a lifetime gifting strategy to minimize the taxes on the estate she is passing on to her son can give him a maximum gift of ________ in company stock each year, tax exempt.

The job specification outlines the duties and responsibilities of a job and its working conditions, while the job description outlines the characteristics-skills, education, experience-a person needs to fill a job.

By linking employees' compensation directly to the company's financial performance, a business owner increases the likelihood that workers will achieve performance targets that are in their best interest and in the company's best interest.

The Foundations of Entrepreneurship

Inside the Entrepreneurial Mind: From Ideas to Reality

Designing a Competitive Business Model and Building a Solid Strategic Plan

Conducting a Feasibility Analysis and Crafting a Winning Business Plan

Forms of Business Ownership

Franchising and the Entrepreneur

Buying an Existing Business

Building a Powerful Marketing Plan

E-Commerce and the Entrepreneur

Pricing Strategies

Creating a Successful Financial Plan

Managing Cash Flow

Sources of Financing: Debt and Equity

Choosing the Right Location and Layout

Global Opportunities

Filters

Exam 16: Building a Team and Management Succession

In a grantor-retained annuity trust (GRAT),

A ________ is the process by which a company determines the duties and the nature of the jobs to be filled and the skills and experience required of the people who are to fill them.

More than ________ percent of all companies in the world are family owned.

One of the best sources for prospects for new positions may come from:

Having a solid management succession plan in place, well before retirement is near, is absolutely critical.

A business founder relying on a lifetime gifting strategy to minimize the taxes on the estate she is passing on to her son can give him a maximum gift of ________ in company stock each year, tax exempt.

The job specification outlines the duties and responsibilities of a job and its working conditions, while the job description outlines the characteristics-skills, education, experience-a person needs to fill a job.

By linking employees' compensation directly to the company's financial performance, a business owner increases the likelihood that workers will achieve performance targets that are in their best interest and in the company's best interest.

The Foundations of Entrepreneurship

Inside the Entrepreneurial Mind: From Ideas to Reality

Designing a Competitive Business Model and Building a Solid Strategic Plan

Conducting a Feasibility Analysis and Crafting a Winning Business Plan

Forms of Business Ownership

Franchising and the Entrepreneur

Buying an Existing Business

Building a Powerful Marketing Plan

E-Commerce and the Entrepreneur

Pricing Strategies

Creating a Successful Financial Plan

Managing Cash Flow

Sources of Financing: Debt and Equity

Choosing the Right Location and Layout

Global Opportunities

Filters