Family Business Worksheet Questions (Transcribed)

Which of the following best defines a family business:

• A business owned by multiple shareholders with no family involvement

• A business where a family holds significant ownership and control

• A business run entirely by professional managers

• A government-owned business

A key uniqueness of family businesses is:

• High bureaucracy

• Overdependence on external investors

• Overlap of family, ownership, and business roles

• Lack of succession planning

Which period marked the rise of modern family businesses in India?

• 1700–1750

• Post-1991 economic reforms

• During the British colonial period

• Post-2000 digital revolution

One major contribution of family businesses to the Indian economy is:

• Minimal employment generation

• Dominance only in rural markets

• Significant share in GDP and employment

• Lack of innovation

Tata Group is an example of:

• First-generation family business

• Family-owned but professionally managed business

• Government-owned business

• Cooperative business

The Birla family is an example of:

• Centralized ownership only

• Professionalization and diversified sectors

• Government support

• Single-product specialization

Family businesses are commonly classified by size into:

• Small, medium, large

• Operational, functional, strategic

• Domestic and international

• Formal and informal

Ownership structure in family businesses refers to:

• Daily operational decisions

• Distribution of shares among family members

• Marketing strategy

• Customer relationship management

Governance in family businesses includes:

• Creating family councils and boards

• Selecting only family employees

• Avoiding external audits

• Reducing transparency

A major motivation for family businesses to go global is:

• Lack of competition in domestic markets

• Need for diversification and growth

• Requirement from investors

• Government compulsion