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:

Flow Of Accounting Data

The process by which financial information moves through an organization's accounting system to be documented and reported.

Ledger

A comprehensive collection of all accounts used by an organization, recording all financial transactions through debits and credits.

Journal

A record where all financial transactions are initially documented in chronological order before being transferred to accounts in the general ledger.

Financial Statements

Documents that present the financial activities and conditions of a business or individual, including balance sheets, income statements, and cash flow statements.