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.
-The company owner expresses a concern about investing the financial capital to expand into adult clothing lines. You recognize this response as a typical characteristic of family businesses, described as______ .

Question

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.
-The company owner expresses a concern about investing the financial capital to expand into adult clothing lines. You recognize this response as a typical characteristic of family businesses, described as______  .

Quizplus · Accepted Answer

Family businesses often exhibit parsimony, which is a cautious approach to spending and investing, due to the desire to preserve family wealth and ensure long-term stability.

You Are a Business Consultant Providing Advice to a Family