Question 1

The proportion of family businesses that are successfully transferred to the second generation is______  .

Accepted Answer

E

Question 2

Your family business operates a chain of cafés and restaurants across three cities. Your uncle has been the company CEO for the last 20 years, and has announced he is planning to retire next year. He discusses his concerns with you.
-He is aware that family businesses can fail to achieve a smooth transition between generations for all of the following reasons except______  .

Accepted Answer

A lack of a clear organizational structure is not specific to family businesses and can affect any business, whereas the other options are common issues specifically related to family business transitions.

Question 3

You are a business consultant providing advice to a family company based in Alexandria, Egypt with 250 employees, involved in the design and manufacture of children's clothing. The company has identified an opportunity to expand into production of certain lines of adult clothing. They are trying to decide whether to invest in development of this new area of the business, and seek your advice.
-You notice that there is good cooperation among family members at the top management level, but it is organized in a very informal way. There is no identifiable board of directors. You advise the company to establish a board of directors for all of the following reasons except______  .

Accepted Answer

E

Question 4

Qatar Computers is a family-owned business based in Doha. Due to substantial recent growth, the company needs to reassess its organizational structure.
-When planning how authority should be delegated, the Qatar Computers can use the concept of the chain of command. This will help them to establish ______  .

Accepted Answer

The chain of command is a system that determines who reports to whom within an organization, establishing a clear line of authority and responsibility.

Question 5

The following statements are typically true of non-family members in most family companies, except ______

Accepted Answer

Non-family members are generally not likely to succeed to top management positions in family companies, even if they are properly qualified, due to the preference for family members in leadership roles.

Question 6

Statistics show that______  of businesses in Asia, the Middle East, Italy and Spain are family controlled.

Accepted Answer

The answer of Statistics show that______  of businesses in...

Question 7

Family businesses typically evolve through three stages. These are:

Accepted Answer

The answer of Family businesses typically evolve through three stages....

Question 8

One major disadvantage of the family business relates to lines of succession, for all of the following reasons except______  .

Accepted Answer

The answer of One major disadvantage of the family business...

Question 9

Unity of command states that______ _.

Accepted Answer

Unity of command is a management principle that suggests each employee should report to only one manager to avoid confusion and conflicting instructions.

Question 10

Your family business operates a chain of cafés and restaurants across three cities. Your uncle has been the company CEO for the last 20 years, and has announced he is planning to retire next year. He discusses his concerns with you.
-You talk to him about your knowledge of business continuity, which you explain as being______  .

Accepted Answer

Business continuity refers to the ability of a business to continue operations during and after a setback, ensuring minimal disruption to its activities.

Question 11

When designing the organizational structure of a family business, managers need to address all of the following elements except______  .

Accepted Answer

The time period is not a typical element considered in the design of an organizational structure. The other options are key elements that define how tasks are divided, authority is distributed, and how many employees report to each manager.

Question 12

Your family business operates a chain of cafés and restaurants across three cities. Your uncle has been the company CEO for the last 20 years, and has announced he is planning to retire next year. He discusses his concerns with you.
-He tells you about the low rates of successful transfer between generations, and that only ______ percent of family businesses make it to the third generation.

Accepted Answer

The answer of Your family business operates a chain of...

Question 13

All of the following are possibly options for transferring ownership of the business, except______  .

Accepted Answer

Transferring ownership as a means of bestowing assets without paying tax after the death of the founder is not a valid option, as taxes are typically applicable on such transfers.

Question 14

A publicly owned business is always focused on ______ .

Accepted Answer

Publicly owned businesses often focus on short-term financial results to satisfy shareholders and maintain stock prices.

Question 15

The degree to which jobs within an organization are standardized is described as______  .

Accepted Answer

Formalization refers to the extent to which rules, procedures, and communications are written and explicitly articulated, leading to standardization of jobs within an organization.

Question 16

When planning departmentalization, popular ways to group activities include all of the following except ______ .

Accepted Answer

Division of labor is not a method of departmentalization; it refers to the assignment of different tasks to different people or groups.

Question 17

Qatar Computers is a family-owned business based in Doha. Due to substantial recent growth, the company needs to reassess its organizational structure.
-When considering the degree of work specialization required, the managers at Qatar Computers should be aware that______  .

Accepted Answer

The answer of Qatar Computers is a family-owned business based...

Question 18

In a family business, the absence of a board of directors is______  .

Accepted Answer

In both family and non-family businesses, the absence of a board of directors can lead to governance issues, as boards provide oversight and strategic guidance.

Question 19

To promote business continuity, the family business can be used as a vehicle for______  .

Accepted Answer

Family cohesion helps ensure that family members work together harmoniously, which is crucial for the long-term success and continuity of the family business.

Question 20

Family-owned businesses can offer advantages to employees that are harder for non-family businesses to offer, including all of the following except______  .

Accepted Answer

Family-owned businesses may not offer shares to employees as they often prefer to keep ownership within the family, unlike public companies that offer shares to employees.

Quiz 16: Organizational Behavior in the Family Business

The proportion of family businesses that are successfully transferred to the second generation is______ .

The following statements are typically true of non-family members in most family companies, except ______

Statistics show that______ of businesses in Asia, the Middle East, Italy and Spain are family controlled.

Family businesses typically evolve through three stages. These are:

One major disadvantage of the family business relates to lines of succession, for all of the following reasons except______ .

Unity of command states that______ _.

When designing the organizational structure of a family business, managers need to address all of the following elements except______ .

All of the following are possibly options for transferring ownership of the business, except______ .

A publicly owned business is always focused on ______ .

The degree to which jobs within an organization are standardized is described as______ .

When planning departmentalization, popular ways to group activities include all of the following except ______ .

Qatar Computers is a family-owned business based in Doha. Due to substantial recent growth, the company needs to reassess its organizational structure. -When considering the degree of work specialization required, the managers at Qatar Computers should be aware that______ .

In a family business, the absence of a board of directors is______ .

To promote business continuity, the family business can be used as a vehicle for______ .

Family-owned businesses can offer advantages to employees that are harder for non-family businesses to offer, including all of the following except______ .