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In Regards to Family Ownership, All of the Following Are

question 39

Essay

In regards to family ownership, all of the following are true except:
a. Most small firms in the world are owned and controlled by families.
b. The vast majority of large corporations throughout continental Europe, Asia, Latin America, and Africa no longer feature concentrated family ownership and control.
c. Family ownership and control may provide better incentives for the firm to focus on long-run performance.
d. Such ownership may also minimize the conflict between owners and professional managers typically encountered in widely owned firms.
e. Family ownership and control may lead to the selection of less qualified managers who happen to be the sons, daughters, and relatives of owners.


Definitions:

Business Practices

The methods, strategies, and procedures employed by companies in the design, production, marketing, and sale of their products and services.

Sherman Act

A United States antitrust law passed in 1890 that outlaws monopolistic practices and promotes competition.

Trusts

Legal arrangements where one party, known as the trustor, grants another party, the trustee, the right to hold title to property or assets for the benefit of a third party, the beneficiary.

Market Competition

The rivalry among companies to attract customers and gain market share by offering better products, services, and terms.

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