The idea behind _____ is that gains and losses in nonfinancial characteristics of the relationship between the family and the business affect strategic and policy decisions regarding the company.
A) co-preneurship
B) socioemotional wealth
C) nepotism
D) altruism

Question

Quizplus · Accepted Answer

The concept of socioemotional wealth (SEW) suggests that family involvement in a business is driven by emotional and non-financial factors such as identity, influence, and family relationships. SEW theory suggests that these non-financial aspects can affect strategic and policy decisions of the family business. Co-preneurship refers to both family members being involved in the business, nepotism refers to favoritism towards family members, and altruism refers to selfless concern for the well-being of others, which may be a factor in some family businesses but is not directly related to strategic and policy decisions.

The Idea Behind _____ Is That Gains and Losses in Nonfinancial