Why Do Overlap of Family Concerns and Business Interests Complicate

question 49

Multiple Choice

Why do overlap of family concerns and business interests complicate management of a family firm?

• A) All profit should go to the founder of the business.
• B) Its leader must struggle with making all the decisions.
• C) Good non-family employees may get overlooked for advancement.
• D) Children of the business's founder are expected to take over the business.

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Definitions:

Working Memory

An intellectual mechanism with constrained capabilities tasked with momentarily retaining data for processing purposes.

Baddeley's View

Refers to Alan Baddeley's model of working memory, which suggests it consists of multiple components, including the phonological loop, visuospatial sketchpad, episodic buffer, and central executive.

Retroactive Interference

A memory phenomenon where newer information interferes with the ability to recall older information.

Proactive Interference

Proactive interference occurs when older memories make it more difficult to learn and recall new information.