Which of the Following Statements Regarding Family-Owned Businesses Is True

question 27

Multiple Choice

Which of the following statements regarding family-owned businesses is true?

• A)Only a small percentage of family-owned businesses survive into the second or third generation.
• B)Family-owned companies must submit a written agreement to the state in which it organizes.
• C)All family-owned companies must be closed corporations.
• D)Family-owned companies are an example of a not-for-profit corporation.

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Definitions:

Foreign Assets

Financial assets held in a country other than the investor's home country, including stocks, bonds, real estate, or currencies.

U.S. Net Exports

The value of goods and services exported by the United States minus the value of goods and services it imports, reflecting the country's trade balance.

U.S. Net Capital Outflow

The difference between the amount of U.S. assets bought by foreigners and the amount of foreign assets bought by Americans within a specific time period.

Chinese Currency

Refers to the official currency of China, primarily the Renminbi (RMB), with the yuan as the basic unit.