FAMILY BUSINESS

It is an interaction between two sets of organization, family and business that establishes the basic character of the family business and defines uniqueness. This refers to

• generational transfer

• ownership management

• family involvement

• multiple conditions

An enterprise which in practice is controlled by the family members of a single family. It refers to

• family involvement

• generational transfer

• multiple conditions

• ownership management

•A company is considered a family business when it has been closely identified with at least 2 generations of a family and when this link has had a mutual influence on a company policy and on the interest and objectives of the family. It refers to

• multiple conditions

• ownership management

• family involvement

• generational transfer

A younger family member has or will assume control the business from an elder. It is refers to

• generational transfer

• multiple conditions

• ownership management

• family involvement

Some family businesses are reluctant to let outsiders into the top tier, and the result is that people are given jobs for which they lack the skills, education, or experience. This scenario refers to

• nepotism

• succession planning

• family conflict

• ingenuity

A strategy for identifying and developing future leaders in a company. This process refers to

• nepotism

• succession planning

All of the following are the CORRECT statement of advantages of family business, EXCEPT

• TRUST AND AUTHENTICITY

• FLEXIBILITY AND VERSATILITY

• UNSTRUCTURED GOVERNANCE

• REDUCING THE COMPANY COSTS

The following are the CORRECT statement of disadvantages of family business, EXCEPT

• FAMILY CONFLICT

• NEPOTISM

• SUCCESSION PLANNING

• THE SENSE OF BEING IN CONTROL OF THEIR DESTINY

The example of Samsung Group, whose chairman, Lee Kun-Hee, was forced to resign in 2008 after being indicted for tax evasion and criminal breach of trust charges. The case happened due to

• FAMILY CONFLICT

• UNSTRUCTURED GOVERNANCE

The family controlled firm or family ownership is the most common form of business organization in the world.

• TRUE

• FALSE