Which of the following statements about family businesses succession is true?

Question

Quizplus · Accepted Answer

Many founders have a hard time passing the management authority to the next generation as they tend to have a strong attachment to their business and are reluctant to let go. This can lead to conflicts and difficulties in succession planning. The other options (B, C, and D) are untrue or exaggerations. While some family businesses do fail in succession planning, it's estimated that around 30% of family-owned businesses successfully transfer to the second generation. It's not easy for heirs to assume authority as they may lack the skills, experience, and leadership qualities required. And while some family-owned businesses don't make it to the third generation, it's not as low as 5%.

Which of the Following Statements About Family Businesses Succession Is