A Negative Often Associated with Family Businesses Is When

question 53

Multiple Choice

A negative often associated with family businesses is when

• A) nonfamily employees mistrust incompetent family employees.
• B) nonfamily employees work longer hours than family employees.
• C) extended family members share knowledge.
• D) family members share a commitment to the firm.

---

Definitions:

Actuarial Calculations

Mathematically based evaluations of insurance and finance risks, primarily used in the insurance industry and pension fund management.

Assumed Investment Rate

The projected rate of return assumed for a hypothetical investment over a specific period.

Annuity Cost

The initial investment or premium required to purchase an annuity, which in return provides periodic payments for a specified period or for life.

Pretax Return

The financial return on an investment before any taxes are deducted.