According to Peter Drucker, Which of the Following Is True

question 22

Multiple Choice

According to Peter Drucker, which of the following is true with respect to managing a family business?

• A) Mediocre performance by family members employed in the company may be tolerated.
• B) The business should be aggressively managed.
• C) The business should not hire family members, despite good qualifications.
• D) Someone outside the family and the business should help plan succession.
• E) The business should "go public" as soon as possible.

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Definitions:

Money Supply

The aggregate amount of economic resources in terms of money, inclusive of cash, coins, and savings and checking account balances, at a particular moment.

Real Output

The total value of all goods and services produced by an economy, adjusted for inflation, reflecting the actual productive capacity.

Business Fluctuations

Variations in the growth rate of an economy over time, including periods of expansion and contraction.

Money Supply

The overall volume of fiscal assets in an economy, which includes cash, coins, and amounts in checking and savings accounts, at a certain time.