To Protect the Interests of Both the Family and the Business

question 31

Multiple Choice

To protect the interests of both the family and the business in a family business, the owner should

• A) recognize a basic obligation to supply family members with employment of some type.
• B) refuse to hire family members but, instead, reward them with generous dividends.
• C) personally make all personnel decisions affecting family members.
• D) identify the positions, if any, that are reserved for family members when hiring nonfamily employees.

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Definitions:

Inherent Need

A basic or fundamental need that is intrinsic to human nature, such as the need for food, safety, or belonging.

Fertilize

The process of adding nutrients to soil or the act of a sperm cell joining with an egg cell to start the development of a new organism.

Distribute Genes

The process by which genetic material is spread or transmitted from parents to offspring through reproduction.

Passion

A very strong feeling about a person or thing; an intense emotion, enthusiasm, or desire for something.