Which of the Following Is an Advantage of Family-Owned Businesses

question 40

Multiple Choice

Which of the following is an advantage of family-owned businesses?

• A) Lack of interest among family members
• B) Family conflict
• C) Leadership stability for several years
• D) Nepotism

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Definitions:

Firm

A business or economic entity engaging in commercial, industrial, or professional activities.

Opportunity Costs

The loss of potential gain from other alternatives when one alternative is chosen.

Profit-maximizing

A firm's strategy or approach to achieve the highest possible profit from its operations, focusing on optimizing production and sales.

Accounting Costs

The recorded expenses in the financial statements of a company, including both fixed and variable costs incurred during business operations.