Question 1

Jodie has often made decisions to forego immediate profits in order to develop relationships that she knows will benefit her children when they take over the family business.According to Sirmon and Hitt,what is this an example of?
A) reduced cost of control
B) shared social networks
C) focus on the long run
D) preservation of reputation

Accepted Answer

Jodie's focus on developing relationships that will benefit her children in the future demonstrates an emphasis on the long run rather than immediate profits.

Question 2

Name four parental concerns with passing on the business to the next generation.

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Question 3

Which statement best describes a family business?
A) The total investment in the business comes from one owner.
B) The son works in the business part-time during the school year and full-time during the summer.
C) The business is extremely small,with less than $100,000 annual sales revenue.
D) The owner of the business treats it as a "cash cow," using its income to pay college tuition for her children.

Accepted Answer

A family business is any business in which two or more members of a family are involved and the majority of ownership or control lies within a family. Choice B describes one son's involvement in the business, which is a common aspect of a family business. The other choices do not necessarily imply a family business.

Question 4

Jacintha hired a nonfamily executive who has experience working in the overseas markets that the company has begun selling within.No family member is familiar with these markets.Why did Jacintha hire a nonfamily member?
A) to bridge the gap between generations of family members
B) to set new directions for the business
C) to deal with change
D) to provide new skills and expertise

Accepted Answer

Jacintha hired a nonfamily executive because they have experience working in the overseas markets that the company has begun selling within, and no family member is familiar with these markets. This suggests that the nonfamily member was hired to provide new skills and expertise that the family members currently lack.

Question 5

Describe the advantages and disadvantages of a husband-wife team running a business.

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Question 6

Describe a "family council."

Accepted Answer

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Question 7

Describe what the CAFE organization can do for family businesses.

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Question 8

Identify and explain five "best practices" for family enterprises.

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Question 9

Discuss the transfer of ownership within a family business.

Accepted Answer

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Question 10

Which of the following best describes the close relationship of business factors and family concerns in a family business?
A) separation of domains
B) generational gap
C) sibling rivalry
D) overlap

Accepted Answer

In a family business, there is often an overlap between business factors and family concerns. This means that issues within the family can affect the business, and vice versa. For example, family conflicts can impact decision-making in the business, and business decisions can impact family dynamics. It is important for family businesses to address these overlaps and work to manage both the business and the family relationships.

Question 11

What is a family business?

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Question 12

Describe two of the four reasons why members of a family joined the business.

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Question 13

Why do the founder's values become part of the family organizational culture?
A) The founder insists that the values are sound.
B) The values work and become accepted by the group.
C) The values coincide with modern management theory.
D) Family members follow family traditions without excessive analysis.

Accepted Answer

The founder's values become part of the family organizational culture because they work and have been accepted by the group. This is often due to the founder demonstrating these values through their leadership and decision-making, making them a part of the company's identity and culture.

Question 14

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

Accepted Answer

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Question 15

What is CAFE?
A) a consulting firm providing advice to family businesses
B) an expression that denotes relaxation time for the family at a local café
C) a radio talk show for family entrepreneurs in distress
D) a not-for-profit agency providing assistance to family businesses

Accepted Answer

CAFE stands for the Canadian Association of Family Enterprise, which is a not-for-profit agency providing assistance to family businesses.

Question 16

Of all the relationships in a family business,which relationship has been recognized for generations as the most troublesome?
A) sibling rivalry
B) parent-child relationship
C) spousal relationship
D) in-law rivalry

Accepted Answer

Sibling rivalry has been recognized as the most troublesome relationship in a family business for generations. This is because siblings often have a long history of competition and conflict that can spill over into their business dealings. Additionally, siblings may have different visions for the business or different ideas about how it should be managed, which can lead to disagreements and tensions. These dynamics can be especially challenging when siblings hold different positions within the company or have different levels of involvement.

Question 17

Describe the model of succession in a family business,giving particular attention to its stages.

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Quiz 3: Family Enterprise

Jodie has often made decisions to forego immediate profits in order to develop relationships that she knows will benefit her children when they take over the family business.According to Sirmon and Hitt,what is this an example of?

Name four parental concerns with passing on the business to the next generation.

Which statement best describes a family business?

Jacintha hired a nonfamily executive who has experience working in the overseas markets that the company has begun selling within.No family member is familiar with these markets.Why did Jacintha hire a nonfamily member?

Describe the advantages and disadvantages of a husband-wife team running a business.

Describe a "family council."

Describe what the CAFE organization can do for family businesses.

Identify and explain five "best practices" for family enterprises.

Discuss the transfer of ownership within a family business.

Which of the following best describes the close relationship of business factors and family concerns in a family business?

What is a family business?

Describe two of the four reasons why members of a family joined the business.

Why do the founder's values become part of the family organizational culture?

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

What is CAFE?

Of all the relationships in a family business,which relationship has been recognized for generations as the most troublesome?

Describe the model of succession in a family business,giving particular attention to its stages.