Question 1

Some family businesses benefit from effective collaboration among brothers and sisters.

Accepted Answer

A) True 
 B)False

Question 2

When a parent retires completely and turns the firm over to a son or daughter, the firm ceases to be a family business.

Accepted Answer

A) True 
 B)False

Question 3

Two major factors involved in grooming a son or daughter to enter the family business are the child's aptitude and the right to choose a career.

Accepted Answer

A) True 
 B)False  True

Question 4

For each definition, select the term that best fits.
-Passing ownership of a family business to the next generation

Accepted Answer

A)  cousin consortium
B)  family
C)  family business
D)  family council
E)  family creedF) family of attachmentG) family of originH) family retreatI) organizational cultureJ) owner-managed businessK) sibling partnershipL) socioemotional wealthM) transfer of ownershipN) G) and I)
O) A) and F) M

Question 5

Nonfamily employees in a family business may be caught in the crossfire between feuding family members.

Accepted Answer

A) True 
 B)False

Question 6

Mayer's philosophy of never using debt to finance operations or expansion was born during the Great Depression and passed on to his sons when they joined the family business. Today the multi-million dollar organization proudly follows Mayer's practice under the leadership of Mayer's great-grandsons and -daughters. This family's commitment is based on:

Accepted Answer

A)   family control and influence.
B)   identification of family members with the firm.
C)   binding social ties.
D)   emotional attachment of family members.E) B) and C)
F) None of the above

Question 7

In-laws not working in the family business may have a bad attitude about the company because of only hearing one side of an argument.

Accepted Answer

A) True 
 B)False  True

Question 8

Sibling rivalry in a family business

Accepted Answer

A)   rarely affects nonfamily members in the firm.
B)   may create disagreements about business policy.
C)   is unusual if roles are determined before the siblings join the business.
D)   is often good because it spurs business competition within the organization.E) C) and D)
F) None of the above

Question 9

A responsibility of a junior generation member who desires advancement is to understand that change is needed more so than the history of the family business.

Accepted Answer

A) True 
 B)False

Question 10

For each definition, select the term that best fits.
-The relatives who form your world in your childhood

Accepted Answer

A)  cousin consortium
B)  family
C)  family business
D)  family council
E)  family creedF) family of attachmentG) family of originH) family retreatI) organizational cultureJ) owner-managed businessK) sibling partnershipL) socioemotional wealthM) transfer of ownershipN) F) and L)
O) C) and D)

Question 11

Family retreats are best handled by an outside facilitator, who can help develop an agenda and establish ground rules for discussion.

Accepted Answer

A) True 
 B)False

Question 12

One sibling dilemma in a family business has been labeled the predator/parasite conflict.

Accepted Answer

A) True 
 B)False

Question 13

A family retreat can bring family members closer together as well as strengthen the family business.

Accepted Answer

A) True 
 B)False

Question 14

A family business constitution is sometimes labeled a _____.

Accepted Answer

A)   business plan
B)   by-law guide
C)   family creed
D)   succession planE) A) and B)
F) A) and C)

Question 15

A family business involving two or more children may experience either sibling cooperation or sibling rivalry.

Accepted Answer

A) True 
 B)False

Question 16

From the children's standpoint, one common reason that they may be reluctant to join the family firm is a desire to

Accepted Answer

A)   make a difference in another industry.
B)   prove their abilities without family assistance.
C)   make a higher rate of pay.
D)   help the parent avoid favoritism.E) A) and B)
F) C) and D)

Question 17

Kinder's Deli has been in business for three generations. A place was found for every Kinder child to work in the shop. The name Kinder meant fine deli meats. This family's commitment is based on:

Accepted Answer

A)   family control.
B)   identification with the firm.
C)   binding social ties.
D)   emotional attachment.
E)   renewal of family bonds.F) B) and D)
G) B) and C)

Question 18

The close relationship of business factors and family concerns in a family business has been described as

Accepted Answer

A)   separation of domains.
B)   a generational gap.
C)   an example of blood being thicker than water.
D)   overlapping.E) A) and D)
F) A) and C)

Question 19

Identify the six positives of a family business and explain why these are positives.

Accepted Answer

1. Trust among family members
2. Loyalty...

Question 20

Betsy had always had decisions made for her, first by her parents then by her husband. So when her father asked her to take over the family business, she was afraid of:

Accepted Answer

A)   failure.
B)   success.
C)   commitment.
D)   disappointing outsiders.E) B) and C)
F) A) and B)

Exam 5: The Family Business

Some family businesses benefit from effective collaboration among brothers and sisters.

Correct Answer
verified

When a parent retires completely and turns the firm over to a son or daughter, the firm ceases to be a family business.

Correct Answer
verified

Two major factors involved in grooming a son or daughter to enter the family business are the child's aptitude and the right to choose a career.

Correct Answer
verified
True

For each definition, select the term that best fits. -Passing ownership of a family business to the next generation

Correct Answer
verified
M

Nonfamily employees in a family business may be caught in the crossfire between feuding family members.

Correct Answer
verified

Correct Answer
verified

In-laws not working in the family business may have a bad attitude about the company because of only hearing one side of an argument.

Correct Answer
verified
True

Sibling rivalry in a family business

Correct Answer
verified

A responsibility of a junior generation member who desires advancement is to understand that change is needed more so than the history of the family business.

Correct Answer
verified

For each definition, select the term that best fits. -The relatives who form your world in your childhood

Correct Answer
verified

Family retreats are best handled by an outside facilitator, who can help develop an agenda and establish ground rules for discussion.

Correct Answer
verified

One sibling dilemma in a family business has been labeled the predator/parasite conflict.

Correct Answer
verified

A family retreat can bring family members closer together as well as strengthen the family business.

Correct Answer
verified

A family business constitution is sometimes labeled a _____.

Correct Answer
verified

A family business involving two or more children may experience either sibling cooperation or sibling rivalry.

Correct Answer
verified

From the children's standpoint, one common reason that they may be reluctant to join the family firm is a desire to

Correct Answer
verified

Kinder's Deli has been in business for three generations. A place was found for every Kinder child to work in the shop. The name Kinder meant fine deli meats. This family's commitment is based on:

Correct Answer
verified

The close relationship of business factors and family concerns in a family business has been described as

Correct Answer
verified

Identify the six positives of a family business and explain why these are positives.

Correct Answer
verified
1. Trust among family members
2. Loyalty...
View Answer

Betsy had always had decisions made for her, first by her parents then by her husband. So when her father asked her to take over the family business, she was afraid of:

Correct Answer
verified

Exam 5: The Family Business

Some family businesses benefit from effective collaboration among brothers and sisters.

Correct AnswerverifiedShow Answer

When a parent retires completely and turns the firm over to a son or daughter, the firm ceases to be a family business.

Correct AnswerverifiedShow Answer

Two major factors involved in grooming a son or daughter to enter the family business are the child's aptitude and the right to choose a career.

Correct AnswerverifiedTrue

For each definition, select the term that best fits. -Passing ownership of a family business to the next generation

Correct AnswerverifiedM

Nonfamily employees in a family business may be caught in the crossfire between feuding family members.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

In-laws not working in the family business may have a bad attitude about the company because of only hearing one side of an argument.

Correct AnswerverifiedTrue

Sibling rivalry in a family business

Correct AnswerverifiedShow Answer

A responsibility of a junior generation member who desires advancement is to understand that change is needed more so than the history of the family business.

Correct AnswerverifiedShow Answer

For each definition, select the term that best fits. -The relatives who form your world in your childhood

Correct AnswerverifiedShow Answer

Family retreats are best handled by an outside facilitator, who can help develop an agenda and establish ground rules for discussion.

Correct AnswerverifiedShow Answer

One sibling dilemma in a family business has been labeled the predator/parasite conflict.

Correct AnswerverifiedShow Answer

A family retreat can bring family members closer together as well as strengthen the family business.

Correct AnswerverifiedShow Answer

A family business constitution is sometimes labeled a _____.

Correct AnswerverifiedShow Answer

A family business involving two or more children may experience either sibling cooperation or sibling rivalry.

Correct AnswerverifiedShow Answer

From the children's standpoint, one common reason that they may be reluctant to join the family firm is a desire to

Correct AnswerverifiedShow Answer

Kinder's Deli has been in business for three generations. A place was found for every Kinder child to work in the shop. The name Kinder meant fine deli meats. This family's commitment is based on:

Correct AnswerverifiedShow Answer

The close relationship of business factors and family concerns in a family business has been described as

Correct AnswerverifiedShow Answer

Identify the six positives of a family business and explain why these are positives.

Correct Answerverified1. Trust among family members2. Loyalty...View AnswerShow Answer

Betsy had always had decisions made for her, first by her parents then by her husband. So when her father asked her to take over the family business, she was afraid of:

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
True

Correct Answer
verified
M

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
True

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
1. Trust among family members
2. Loyalty...
View Answer

Correct Answer
verified