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

question 61

Multiple Choice

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

• A)Younger family members working in the business should realize 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 favorable 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:

Conflict Diamonds

Diamonds that are mined and sold by combatants in war zones in Africa as a way to provide the currency needed to finance their military activities.

Extraction Costs

The expenses associated with the removal of natural resources from the earth, such as mining for minerals or drilling for oil.

Long-Term Stream

A sustained flow of actions or processes, often referring to investments or financial commitments that span a lengthy period.

User Cost

The cost of using a good or service, including the opportunity cost of forgone alternatives and the depreciation of the good's own value over time.