If a Family-Owned Business Is a Corporation, Replacement of Ownership

question 54

Multiple Choice

If a family-owned business is a corporation, replacement of ownership is decided by:

• A) the spouse of the former owner.
• B) a court-appointed attorney.
• C) the board of directors.
• D) family law.

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Definitions:

Operating

The day-to-day activities or functions necessary for a business or organization to run effectively and efficiently.

Competitive Market

A market structure characterized by many buyers and sellers, free entry and exit, and a product for which there are many substitutes.

Profit

The financial gain obtained when the amount earned from a business activity exceeds the expenses, costs, and taxes involved in sustaining the activity.

Good

A tangible product or commodity that satisfies human wants or needs.