Family Businesses Represent the Largest Percentage of Businesses Operating Worldwide

question 205

Essay

Family businesses represent the largest percentage of businesses operating worldwide. In the North American economy family businesses employ millions of employees and generate more than a trillion dollars of sales each year. From the perspective of shareholders in a family business, what is an advantage of this kind of company? Also, identify potential disadvantages for shareholders in a family business.

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Definitions:

Schachter

Refers to Stanley Schachter, a psychologist known for his work on emotion, particularly the two-factor theory of emotion.

Physiological Arousal

pertains to the physical responses of the body, such as increased heart rate or adrenaline, often triggered by emotions, stress, or excitement.

James-Lange Theory

A theory of emotion suggesting that physiological arousal precedes the emotional experience, implying that each emotion is associated with a specific pattern of bodily responses.

W. B. Cannon

A physiologist who is known for his work on the fight-or-flight response and for coining the term "homeostasis."