A Number of Entrepreneurs Are Turning to Formal Succession Plans

question 35

Multiple Choice

A number of entrepreneurs are turning to formal succession plans for their family-owned businesses to:

• A) ensure they get proper returns on their investment.
• B) allow themselves to go on a short leave.
• C) prevent endless disputes over ownership between their heirs.
• D) devote time to face-to-face teaching and training.

---

Definitions:

Financing Nature

The characteristic manner or method in which a company prefers to finance its operations, typically equity, debt, or a hybrid.

Spontaneous Financing

Financing provided by current liabilities that arise automatically as a result of doing business.

Accounts Payable

Short-term liabilities a company owes to its creditors or suppliers, expected to be settled within one year.

Bank Loan

A sum of money borrowed from a bank that needs to be repaid with interest.