Why Is Developing a Management Succession Plan So Important to the Founder

question 81

Essay

Why is developing a management succession plan so important to the founder of a family business? Identify and briefly describe the steps of a successful plan.

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Definitions:

Probability

The likelihood of a particular event or outcome occurring, often expressed as a fraction, percentage, or a ratio.

Expected Income

Expected income is the income a person or entity anticipates receiving over a certain period, based on current or future economic factors.

Utility Maximizer

An economic actor who seeks to get the maximum satisfaction or utility from resources available, under the constraints faced.

Probability

The measure of the likelihood that an event will occur, often expressed as a number between 0 and 1, where 1 indicates certainty.