Question 1

Family corporate renewal is where the family's entrepreneurial activity is focused on old streams of value within the business or group through innovation and transformational change activities.

Accepted Answer

False

Question 2

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

Accepted Answer

False

Question 3

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

Accepted Answer

False

Question 4

The family corporate venturing category is when a new family company or group starts new businesses.

Accepted Answer

Family corporate venturing typically involves existing family businesses investing in or creating new ventures, not necessarily starting new family companies.

Question 5

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

Accepted Answer

Enterprising organizations pursue managerial methods that focus on innovation and implementing radical change, rather than maintaining the existing structure and incremental change.

Question 6

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

Accepted Answer

The goal of dialogue is to find creative and innovative solutions that go beyond the limitations of the initial positions presented by the parties involved in the conversation. It's about finding common ground and areas of agreement that can lead to mutually beneficial outcomes.

Question 7

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

Accepted Answer

Family investment funds often represent a significant portion of the family's total wealth, as these funds are typically established to manage and grow the family's assets over time, including making substantial investments in businesses.

Question 8

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

Accepted Answer

Formal family investment funds are typically established after a family has liquidated all or part of their family business or assets, providing them with the capital necessary to create such an investment vehicle.

Question 9

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

Accepted Answer

Cultivating a more formal approach to entrepreneurship can help business families ensure the sustainability and longevity of their businesses, as well as their wealth. This includes developing systems, structures, and processes to manage the business, as well as engaging in strategic planning and talent management.

Question 10

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

Accepted Answer

This statement accurately defines family influenced start-ups as businesses where family ownership and leadership have a significant impact on the company's goals and decision making.

Question 11

Almost all of the small and mid-sized family-owned businesses in Canada are modest, "mom-and-pop" operations.

Accepted Answer

The answer of Almost all of the small and mid-sized...

Question 12

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

Accepted Answer

The answer of The familiarity of a family can make...

Question 13

Family investment funds are pools of family capital that families use for entrepreneurial activities.

Accepted Answer

Family investment funds are typically created to support the entrepreneurial activities of family members, often with the goal of generating wealth and creating a legacy for future generations.

Question 14

Families who intend to act entrepreneurially must be opportunity focused.

Accepted Answer

To be successful as an entrepreneur, being opportunity-focused is crucial. Families who wish to act entrepreneurially should seek out opportunities and be willing to innovate and take risks to achieve their goals.

Question 15

Families comprise the dominant form of business organization worldwide and provide more resources for the entrepreneurial economy than any other source.

Accepted Answer

According to research, families are indeed the dominant form of business organization worldwide and provide more resources for the entrepreneurial economy than any other source.

Question 16

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

Accepted Answer

The answer of Research shows that most often, family cash...

Question 17

Enterprising families institutionalize the opportunity seeking processes in the mindset and methods of both their family ownership group and their business organizations.

Accepted Answer

Enterprising families recognize the importance of continually seeking new opportunities and institutionalize this approach in their family and business structures. This helps to ensure that the mindset and methods for identifying and pursuing opportunities are ingrained in the family and organizational culture.

Question 18

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

Accepted Answer

Studies have indeed shown that family-influenced companies tend to perform better than non-family businesses on various measures of financial success.

Question 19

As enterprise refers to economic activity, enterprising is the action of generating economic activity.

Accepted Answer

This is a correct definition of enterprising. Enterprising refers to the initiative to start and develop new economic activity or ventures.

Question 20

One of the primary roles families play is to provide family private cash to family members who want to start a business.

Accepted Answer

Families often invest in their own members' entrepreneurial ventures by providing start-up funds or loans, which is known as family private cash.

Quiz 14: The Deal: Valuation, Structure, and Negotiation

Family corporate renewal is where the family's entrepreneurial activity is focused on old streams of value within the business or group through innovation and transformational change activities.

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

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

The family corporate venturing category is when a new family company or group starts new businesses.

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

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

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

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

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

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

Almost all of the small and mid-sized family-owned businesses in Canada are modest, "mom-and-pop" operations.

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

Family investment funds are pools of family capital that families use for entrepreneurial activities.

Families who intend to act entrepreneurially must be opportunity focused.

Families comprise the dominant form of business organization worldwide and provide more resources for the entrepreneurial economy than any other source.

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

Enterprising families institutionalize the opportunity seeking processes in the mindset and methods of both their family ownership group and their business organizations.

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

As enterprise refers to economic activity, enterprising is the action of generating economic activity.

One of the primary roles families play is to provide family private cash to family members who want to start a business.