Sibling Rivalry in a Family Business

question 73

Multiple Choice

Sibling rivalry in a family business

• A) rarely affects nonfamily members in the firm.
• B) may create disagreements about business policy or about siblings' roles within the business.
• C) is unusual since only one child will normally be employed in a family business.
• D) is often good because it spurs healthy business competition.

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Definitions:

Investing Activities

Financial transactions related to the acquisition or disposal of long-term assets and investments, considered part of the cash flow statement.

Equipment Purchase

The acquisition of machinery or office equipment, usually classified as a capital expense, to be used in the operations of a business.

Land Purchase

An acquisition of real estate property involving a one-time payment or installment payments, considered a long-term asset on the balance sheet.

Net Cash Flow

The difference between a company's cash inflows and outflows within a given period, indicating the company's ability to generate cash.