A Family Council Is Most Effective When

question 25

Multiple Choice

A family council is most effective when:

• A)it is viewed as another type of casual get-together.
• B)works behind the scenes to maintain harmony between family and nonfamily employees.
• C)it comprises both family and nonfamily members.
• D)it provides governance to the organization and engages in strategic planning and family succession planning.

---

Definitions:

Inventory Errors

Inventory errors are discrepancies between the actual physical inventory and the reported inventory in a company's accounting records, often leading to financial statement inaccuracies.

Consignor

The manufacturer in a consigned inventory arrangement.

Consignment

A business arrangement where goods are left in the possession of another party to sell, but the owner retains ownership until the goods are sold.

Days' Sales

Refers to the ratio that indicates how many days worth of sales a company has in inventory, providing insight into inventory management efficiency.