While a Large Percentage of Business Founders Plan to Pass

question 34

Multiple Choice

While a large percentage of business founders plan to pass on their businesses,few create management succession plans because:

• A)they don't know how to do it.
• B)they are reluctant to let go of the business.
• C)they can't afford the attorneys' and accountants' fees.
• D)they don't feel they need one because they know which child will assume management of the business.

---

Definitions:

Accrued Salaries

Wages that have been earned by employees but have not yet been paid out.

Fixed Assets

Long-term tangible assets that are used in the operations of a business and are not intended to be sold within a year.

Average Collection Period

The average number of days it takes for a company to collect payments from its credit sales.

Collection Policy

The procedures and guidelines used by a company to monitor and manage the collection of debts owed to it.