Which of the Following Is an Advantage of Selling a Family-Owned

question 38

Multiple Choice

Which of the following is an advantage of selling a family-owned business to family members?

• A) Fewer family members are hired in the business.
• B) The former owner has to take some responsibility toward the business.
• C) Family bonds are strengthened and additional friction is reduced.
• D) The former owner still owns the business until retirement.

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Definitions:

Property Plant

Long-term physical assets owned by a company, such as buildings and machinery, used in operations to generate revenue.

Intangible Assets

Non-physical assets owned by a business, such as patents, trademarks, and copyrights, that have economic value.

Office Equipment

Long-term assets used in an office for the business operations, such as computers, desks, and chairs.

Book Value

Book value is the net value of a company's assets as recorded on its financial statements, minus any liabilities.