Which of the following statements regarding family-owned businesses is true?
A)Only a small percentage of family-owned businesses survive into the second or third generation.
B)Family-owned companies must submit a written agreement to the state in which it organizes.
C)All family-owned companies must be closed corporations.
D)Family-owned companies are an example of a not-for-profit corporation.

Question

Quizplus · Accepted Answer

Family-owned businesses often struggle with succession planning, which results in only a small percentage surviving into the second or third generation. This is due to various factors including family dynamics, interest, and capability of the next generation to run the business.

Which of the Following Statements Regarding Family-Owned Businesses Is True