When formulating a Business Succession Plan the owner should determine several things.Which of the following is not considered?
A)Should ownership be held by family members only?
B)Are the owner and the spouse on the same page with respect to continuing the business?
C)Should the business be sold to pay inheritance taxes?
D)Does the owner want the business ownership to pass directly to the heirs or in trust?

Question

Quizplus · Accepted Answer

While inheritance taxes may be a consideration in a Business Succession Plan, determining whether the business should be sold to pay them is not a factor that the owner should consider. The focus should be on determining how the business will continue after the owner's departure, not on how to pay taxes.

When Formulating a Business Succession Plan the Owner Should Determine