Which of the Following Statements Regarding Family-Owned Businesses Is True

question 27

Multiple Choice

Which of the following statements regarding family-owned businesses is true?

• A)Only a small percentage of family-owned businesses survive into the second or third generation.
• B)Family-owned companies must submit a written agreement to the state in which it organizes.
• C)All family-owned companies must be closed corporations.
• D)Family-owned companies are an example of a not-for-profit corporation.

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Definitions:

Promisee

The person to whom a promise is made in a contractual agreement, and who stands to benefit from its fulfillment.

Promise

A promise or guarantee that an individual will take a specific action or ensure a certain event occurs.

Legally Sufficient

Describes evidence or information that meets the established legal standards to support a claim or decision in court.

Consideration

The exchange of something of value in return for the promise or service of another party, a fundamental component of a valid contract.