A Characteristic of Family-Owned Businesses in the U

question 47

Multiple Choice

A characteristic of family-owned businesses in the U.S. is that they:

• A) have less potential financial risks.
• B) can be a source of unresolved family conflicts.
• C) have little disagreement among members on how to meet business goals.
• D) rarely have family members with differing value systems.

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Definitions:

Universal Life

A type of flexible permanent life insurance that offers the low-cost protection of term life insurance as well as a savings element, which is invested to provide a cash value buildup.

Protection

Measures taken to safeguard something or someone against harm or damage.

Life Insurance

A contract between an insurer and a policyholder in which the insurer pays a designated beneficiary a sum of money upon the death of the insured person.

Floater Policy

A policy that insures property that cannot be covered by specific insurance because the property is constantly changing in either value or location.