Which Statement Is True Concerning Using Available Family Talent in the Succession

question 13

Multiple Choice

Which statement is true concerning using available family talent in the succession plan?

• A)Younger family members working in the business should realise that mistakes early on in their careers should be considered in their future advancement.
• B)If the available talent is not sufficient inside the company, the owner must bring in outside leadership even if it is not perceived as a favourable decision by the family at large.
• C)If a younger family member would like to advance their career by working on a new direction for the company, a negative decision by their parent means they should not discuss their ideas with the board of directors.
• D)It is rare a younger member will have the skill set to rescue a struggling company; therefore they should not be considered for a succession plan.

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Definitions:

Hippocampus

A crucial part of the brain involved in memory formation and spatial navigation.

Receny Effect

The tendency to remember and give greater importance to the most recently presented information over older information.

Primacy Effect

A cognitive phenomenon where items or information presented first are remembered better than those presented later.

Short-term Memory Capacity

The amount of information that can be held in the short-term memory for a brief period, typically regarded as lasting 20 to 30 seconds.