Jim, the founder of a family business specializing in real estate, is contemplating turning the business over to his five children. One possibility, the founder believes, is to divide ownership equally among the children. This action would
A) be next to impossible because gaining consensus from that many people is difficult.
B) be inherently unfair if any of the children work in the company.
C) potentially be inconsistent with the future successful operation of the business.
D) require a possible change in corporate structure because the company deals in real estate.

Question

Quizplus · Accepted Answer

Distributing equal ownership among the children may not be consistent with the successful operation of the business in the future. It may lead to conflicts and decision-making problems. Therefore, alternative ownership structures and management arrangements should be considered.

Jim, the Founder of a Family Business Specializing in Real