What Is Often the Most Difficult Decision for a Founder

question 64

Multiple Choice

What is often the most difficult decision for a founder when passing the business on to his children?

• A) determining whether they should all receive equal shares
• B) finding suitable positions for nonfamily employees
• C) arranging the transition from part-time to full-time employment
• D) dealing with tax implications on the transfer of ownership

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Definitions:

Intestacy Law

Legal provisions that govern the distribution of a deceased person's estate when they die without a valid will, determining how assets are allocated among survivors.

Estate Planning

Planning in advance how one’s property and obligations should be transferred on one’s death. Wills and trusts are two basic devices used in estate planning.

Duty of Loyalty

An obligation of fiduciaries, such as corporate directors or trustees, to act in the best interest of their beneficiaries or the corporation without conflict of interest.

Powers of Attorney

Legal documents that grant one person the authority to act on behalf of another in legal or financial matters.