Which of the Following Actions Is Best for Parents to Decrease

question 55

Multiple Choice

Which of the following actions is best for parents to decrease succession conflict among children active in the firm and those who are not?

• A) Let those not involved in the company have a larger portion of an inheritance outside of the company, and allow those involved in daily operations have more ownership of the business.
• B) Let the next generation reach a consensus about management of the company.
• C) Change the ownership of the company so common (voting) stock is only given to those active in the firm's management and others receive preferred (nonvoting) stock.
• D) Make decisions based on tax considerations, not what is best for the next generation or the business.

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Definitions:

Profitable Partnerships

Collaborations between businesses that aim to enhance profitability and achieve mutual goals.

Corporate Social Responsibility

A business approach that contributes to sustainable development by delivering economic, social, and environmental benefits for all stakeholders.

Legislative Factors

Elements related to the laws and regulations that can influence or impact businesses, policies, and individuals' actions.

Ethical Behavior

Refers to actions that are consistent with principles of morality, including honesty, fairness, and equity in relationships and society.