Deck 17: The Family As Entrepreneur

Question 1

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

Answer 1

True

Question 2

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

Answer 2

False

Question 3

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

Answer 3

False

Question 4

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

Question 5

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

Question 6

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

Question 7

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

Question 8

When entrepreneurial processes are institutionalized through governance structures and policies,this promotes growth and change activities.

Question 9

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

Question 10

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

Question 11

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

Question 12

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

Question 13

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

Question 14

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

Question 15

Families often have a vague notion of "working together," and they assume that they will figure the details out over time.

Question 16

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

Question 17

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

Question 18

Families still dominate the U.S.economy and even more fully the economies of other countries worldwide.

Question 19

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

Question 20

Most of the small and midsized family-owned businesses in the U.S.are modest and typical mom-and-pop operations.

Question 21

What are the six dimensions for family enterprising?

Question 22

The Timmons Model shows us that at the heart of the entrepreneurial process is the _____.

Question 23

The idiosyncratic bundle of resources and capabilities that can give an enterprising family an advantage in the entrepreneurial process is referred to as its _____.

Question 24

Identify a characteristic of the entrepreneurial methods for enterprising.

A) Allocating proportionate resources to existing business opportunities
B) Being willing to sell and redeploy assets to seek higher returns
C) Investing late to develop or adopt existing technology to new processes
D) Having formal routines for gathering and disseminating market intelligence

Question 25

Identify a characteristic of the financial mind-set for enterprising.

A) Allocating disproportionate resources to new business opportunities
B) Adopting an "undo the competitor" market posture typically
C) Assuming that a percentage of the business will become obsolete
D) Seeking new opportunities beyond the core (legacy)business

Question 26

The mind-set continuum is primarily a measure of the _____ profile of the family owners-shareholders.

Question 27

Define enterprising.

Question 28

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 29

Enterprising families _____ the opportunity-seeking processes in the mind-set and methods of both their family ownership group and their business organizations.

Question 30

Family enterprising is the combination of a _____ ownership mind-set and entrepreneurial strategic methods.

Question 31

Families are often,and quite naturally,_____ who build numerous businesses under a family umbrella.

Question 32

What is transgenerational entrepreneurship?

Question 33

The _____ assumes that enterprising organizations are taking bold,innovative,market-leading actions to seek a competitive advantage and generate new streams of value.

Question 34

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

Question 35

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 36

Family corporate venturing primarily involves _____.

A) family holding companies or businesses that have formal new venture creation and/or acquisition strategies,plans,departments,or capabilities
B) startup money from family member or business with a formal written agreement for market-based ROI and or repayment
C) stand-alone professional private equity or venture capital fund controlled by family and/or using family-generated capital
D) an entrepreneur with no legacy assets/existing business,but who formally launches a new business with family and/or intending to involve family

Question 37

As enterprise refers to economic activity,_____ is the action of generating new economic activity and building long-term value across generations.

Question 38

Which of the following is the first thing needed to build a successful enterprising family?

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

Question 39

The family _____ category occurs when an existing family company or group starts new businesses.

Question 40

Family corporate renewal occurs where the family's entrepreneurial activity is focused on _____.

A) creating new streams of value within the family business
B) strategic alliances
C) creating a sense of shared urgency in the organization
D) family holding companies

Question 41

List five attributes of relationship capital.

Question 42

Which aspect of the Timmons Model is of particular significance in the context of family enterprising?

Question 43

Discuss why a financial mind-set is more effective than an operational mind-set.

Question 44

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