The Key Difference Between a Family Council and a Board

question 41

Multiple Choice

The key difference between a family council and a board of directors is that:

• A) the council is comprised of unrelated members while the board is comprised of family members.
• B) the board of directors maximizes communication while the council works on unique company problems.
• C) the council is to keep the family involved while the board is focused on running the business.
• D) the board can seek legal advice while the council gathers legal advice from the board.

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Definitions:

Inelastic Demand

A situation where the demand for a product does not significantly change with a change in its price.

Price Inelastic

Refers to a situation where the quantity demanded or supplied of a good or service changes by a smaller percentage than changes in price.

Alcohol Tax

A tax imposed on the sale of alcoholic beverages, often used as a means to discourage excessive drinking and to generate government revenue.

Revenue

The total amount of money generated by a company from its business activities, such as sales of goods or services, before any expenses are subtracted.