A Common Problem for a Founder in Passing the Business

question 46

Multiple Choice

A common problem for a founder in passing the business on to a daughter or son is

• A) introducing the child to outsiders such as bankers.
• B) finding a suitable position for the son or daughter within the business.
• C) arranging the transition from part-time to full-time employment.
• D) giving little thought to the child's talent, aptitude, and temperament.

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Definitions:

Pure Play

A company that focuses on a single type of product or service, without diversification into other areas.

Subjective Approaches

Methods based on personal opinions, interpretations, points of view, or judgments rather than on objective or external data.

WACC

Weighted Average Cost of Capital, a calculation that reflects the average rate that a company is expected to pay its security holders to finance its assets.

Weighted Average

A calculation that takes into account the varying degrees of importance of the numbers in a dataset, assigning weights accordingly.