Which of the Following Is a Consequence of Establishing a Family

question 87

Multiple Choice

Which of the following is a consequence of establishing a family partnership or a family-owned S corporation?

• A)The original owners will have their control of the business diluted.
• B)For the structure of the family business to be honored,the transfers to the younger family members must be complete and legally binding.
• C)The transfers to the younger family members must be irrevocable.
• D)All of the above are consequences of establishing a family partnership or a family-owned S corporation.

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Definitions:

Incentive Pay Plans

Compensation strategies designed to motivate employees through financial rewards based on performance, productivity, or achievement.

Base Pay

The initial salary given to an employee, not including benefits, bonuses, or any other potential compensation.

Merit Pay Plans

Compensation strategies that provide pay increases based on an employee's performance, as opposed to seniority or hours worked.

Performance Management System

A continuous process by which managers and employees work together to plan, monitor, and review an employee’s work objectives and overall contribution to the organization.