Chapter 5 The Family Business Questions Correctly Answered 2024.

Chapter 5 The Family Business Questions Correctly Answered 2024. When a parent retires completely and turns the firm over to a son or daughter, the firm ceases to be a family business. T/F - ANSWER False In a family business, the family's primary function it to ensure the profitability and survival of the business. T/F - ANSWER False An advantage of a family business is that family business is that family members may have company knowledge that leads to better decisions. T/F - ANSWER True Nepotism is not as large of a problem for small companies as for large ones T/F - ANSWER False One weakness of a family business is the tendency of family members to leave quickly when the business starts to falter. T/F - ANSWER False Husband-wife teams that own a business are popularly referred to as co-preneurs. T/F - ANSWER True 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. T/F - ANSWER True The role of the entrepreneur's spouse in family conflicts can sometimes be described as that of a mediator in business relationships between the entrepreneur and the children. T/F - ANSWER True In the family business, family considerations affect only members of the family. T/F - ANSWER False Nonfamily employees in a family business may be caught in the crossfire between feuding family members. T/F - ANSWER True