Which Actions a Family Should Consider in Order to Avoid

question 37

Multiple Choice

Which actions a family should consider in order to avoid problems associated with conflicting values and goals?

• A)Make certain assumption that a successor must always be a family member.
• B)Family members should not be working outside the family business due to conflict of interest and confidentiality agreements.
• C)All family members are required to join the business either full time or part time.
• D)None of the above

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Definitions:

Organizational Beliefs

The shared values, principles, and norms that characterize the culture and behaviors of an organization, influencing its decision-making and practices.

Positional Power

The authority and influence that comes from the position one holds within an organization's hierarchy.

Coercive Power

A form of power based on the ability to deliver punishments or impose negative consequences to influence behavior.

Reward Power

The capability to offer rewards or positive incentives in order to influence the behavior of others or secure compliance.