Which Statement Is Drawn from the Managing for Growth Study

question 56

Multiple Choice

Which statement is drawn from the Managing for Growth study on succession?

• A) Ownership should be passed to the next generation as soon as they complete their post-secondary education.
• B) Owners should not look for a clone of themselves to carry on the business.
• C) Training candidates in the corporate culture will inhibit the probability of employee and customer acceptance.
• D) Establish general guidelines for performance for a year after succession.

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Definitions:

Domestic Corporation

A corporation that is incorporated under the laws of the country in which it is doing business.

Taxable Income

The portion of income subject to taxes after adjustments, deductions, and exemptions are applied to gross income.

FMV

The fair market value, or the price that property would sell for on the open market between a willing buyer and a willing seller.

Complete Liquidation

The process of closing a business by selling all assets, paying off creditors, and distributing any remaining assets to shareholders or owners.