Which of the Following Is NOT True

question 28

Multiple Choice

Which of the following is NOT true?

• A) Cultural competence is important when hiring an outside manager.
• B) Professional managers are not always prepared to deal with the special nature of family-owned businesses
• C) Nonfamily members are typically not offered stock opportunities if and when the company goes public.
• D) The absence of an employment policy can result in the business ending up with more employees than it needs.
• E) There are no rules that dictate the content of a family business employment policy.

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Definitions:

Feasibility Planning

The process of analyzing and evaluating the potential of a proposed project or business to determine if it is technically, financially, and legally possible.

Initial Experimentation

The first phase of testing or trial in the process of research or development, where theories or hypotheses are explored to gather early insights.

Organic Structure

An organizational design that is flexible and decentralized, with a focus on employee empowerment and informal communication networks.

Cross-Functional Teams

Cross-functional teams bring together members from different functional departments.