What Step Is Best for Parents to Decrease Succession Conflict

question 26

Multiple Choice

What step is best for parents to decrease succession conflict among children active in the business and those who are not?

• A)Letting 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)Letting the next generation reach a consensus about management of the company.
• C)Changing the ownership of the company so common (voting) shares is only given to those active in the company and others receive preferred (non-voting) shares.
• D)Making decisions based on tax considerations, not what is best for the next generation or business.

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Definitions:

Parasympathetic Nervous System

Part of the autonomic nervous system responsible for conserving energy and promoting 'rest and digest' bodily functions.

Sympathetic Nervous System

Part of the autonomic nervous system that prepares the body for physical activity, often referred to as the fight or flight response.

Developmental Psychologists

Specialists who study how and why human beings change over the course of their life, from infancy through old age.

Adolescent Changes

These are the physical, psychological, and social transformations that occur in individuals typically between ages 13 and 19.