Deck 18: The Family As Entrepreneur

Question 1

Formal governance structures and policies create significant ambiguity in families and thus constrains enterprising.

Answer 1

False

Question 2

Business families who are interested in transgenerational entrepreneurship and wealth creation must cultivate the more formal approach to entrepreneurship.

Answer 2

True

Question 3

Families comprise the dominant form of business organization worldwide,and provide more resources for the entrepreneurial economy than any other source.

Answer 3

True

Question 4

Organizational strategy is only as effective as the leadership and relationships in the family and organization.

Question 5

In family enterprising "team" encompasses the family ownership group,as well as the family and non-family entrepreneurial capabilities.

Question 6

The familiarity of a family can make it much easier to challenge assumptions and talk about differing views.

Question 7

Research shows that most often,family cash investments are given based upon formal investment criteria rather than on altruistic family sentiments.

Question 8

Most often,formal family investment funds are created after a family has liquidated all or part of their family group.

Question 9

When entrepreneurial processes are institutionalized through the governance structures and policies it promotes growth and change activities.

Question 10

The goal of dialogue is to find solutions that are not constrained by the boundaries of either of the original positions.

Question 11

A transgenerational commitment requires families to perpetuate a "great leader" model in successive generations.

Question 12

Enterprising organizations pursue managerial methods that focus on maintaining the existing structure and on implementing incremental change.

Question 13

Allocations from family investment funds are usually non-operating investments in businesses and do not represent a significant portion of the family's total wealth.

Question 14

Families have the natural potential to build relationship capital better than other social group.

Question 15

Most of the small and mid-sized family-owned businesses in the US are modest,'mom and pop' operations.

Question 16

Family influenced startups are new businesses where the family ownership vision and/or leadership influence impacts the strategic intent,decision making,and financial goals of the company.

Question 17

Families have the natural potential to destroy relationship capital more ruthlessly than any other social group.

Question 18

Organizational formalization has been shown to constrain entrepreneurial behavior in family enterprises.

Question 19

Studies indicate that family-influenced companies consistently outperform non-family businesses on annual shareholder return,return on assets,and both annual revenue and income growth.

Question 20

Enterprising families focus on maintaining their local advantage,safeguarding their brands,assets,and customers,and on honing their operational efficiencies.

Question 21

Which of the following is the most important aspect of building a successful family enterprise?

A) Financial expertise
B) Communication
C) Mentoring
D) Long-term planning

Question 22

As enterprise refers to economic activity,________ is the action of generating economic activity.

Question 23

Families who intend to act entrepreneurially must be ________ focused.

Question 24

One of the primary roles families play is to provide family ________ to family members who want to start a business.

Question 25

Family ________ are pools of family capital that families use for entrepreneurial activities.

Question 26

Family enterprising is the combination of a ________ ownership mindset and entrepreneurial strategic methods.

Question 27

Which of the following is not a characteristic of entrepreneurial methods for enterprising?

A) Allocating disproportionate resources to new business opportunities.
B) Creating a core competency in innovation at the business unit level.
C) Having institutionalized the entrepreneurial process in the organization.
D) Having informal routines for gathering and disseminating market intelligence.

Question 28

The idiosyncratic bundle of resources and capabilities that an enterprising family can bring to bear on an opportunity is referred to as their ________.

Question 29

Define 'transgenerational entrepreneurship'.

Question 30

Define 'enterprising'.

Question 31

What are the six dimensions for family enterprising?

Question 32

Family ________ occurs where the family's entrepreneurial activity is focused on creating new streams of value within the business or group through innovation and transformational change activities.

Question 33

The family ________ category is when an existing family company or group starts new businesses.

Question 34

The mindset continuum is primarily a measure of the ________ profile of the family owners-shareholders.

Question 35

The financial mindset for enterprising does not include which of the following characteristics?

A) A commitment to generating next-generation entrepreneurship.
B) A willingness to stick with the existing business model.
C) An assumption that a percentage of the business will become obsolete.
D) A willingness to leverage the business to grow and find higher returns.

Question 36

The job of families who desire to be enterprising is to determine how to generate and exploit their ________ familiness and to minimize or shed their ________ familiness.

Question 37

Enterprising families ________ the opportunity seeking processes in the mindset and methods of both their family ownership group and their business organizations.

Question 38

Family corporate venturing primarily involves which of the following?

A) Family holding companies
B) Formal growth plans
C) Intuitive growth initiatives that result in a change in business strategy
D) A private equity fund

Question 39

Family corporate renewal primarily involves which of the following?

A) Creating new streams of value within the family business
B) Strategic alliances
C) Creating new businesses within an existing family company
D) Family holding companies

Question 40

Family leaders who strive to turn their families into a team based upon the ________ philosophy overcome many of the negative caricatures often associated with family business leadership and empower the family and organization to be enterprising.

Question 41

Which aspect of the Timmons Model is of particular significance with regard to family enterprising?

Question 42

Discuss why a financial mindset is more effective than an operational mindset.

Question 43

On what should an enterprising family's strategic thinking and planning be based?

Question 44

List five examples of relationship capital.