Which of the Following Steps Should a Family-Owned Business Take

question 63

Multiple Choice

Which of the following steps should a family-owned business take to compensate family members?

• A) Every relative who wishes to work for the business should be hired.
• B) Family members should be financially rewarded on the basis of their position in the family.
• C) A managerial title should be offered to motivate a productive family member.
• D) Relatives should be offered positions according to their status in the family.

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Definitions:

Production Possibilities Curve

illustrates the maximum achievable output of two goods with a given set of resources and technology, demonstrating the trade-offs and opportunity costs in production.

Inefficiently Employed Resources

Inefficiently Employed Resources refer to the use of resources in a way that does not maximize the potential output or productivity, often leading to wastage and lower economic efficiency.

Economize

The act of reducing expenditure or conserving resources to achieve efficiency in the allocation of resources.

Scarcity

The fundamental economic problem of having seemingly unlimited human wants in a world with limited resources, leading to the necessity of choice.