It Is Important to Remember That the Succession Planning Process

question 8

True/False

It is important to remember that the succession planning process inevitably creates tension and distrust as family members envy the "chosen one."

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Definitions:

Total Income

The sum of all earnings or revenues a person or company generates before any deductions.

Cash Payback Period

The time it takes for an investment to generate an amount of cash flow equal to the initial investment cost.

Annual Net Cash Flows

The amount of cash that a company generates or uses in a given year after all income and expenses are accounted for.

Average Rate of Return

A financial ratio that represents the average net profit or return expected on an investment over its lifetime, expressed as a percentage.