Ch 6

Question 1

What is the process of making important choices in the business

Answer 1

Strategic decision making

Question 2

Family firms are businesses that are

Answer 2

Owned and operated by a family

Question 3

Objectives that are not related to money or finances

Answer 3

Non financial goals

Question 4

The emotional attachment and value that a family has in their business

Answer 4

Socioemotional wealth (SEW)

Question 5

Controlling firm in hopes of passing it on to future family generations

Answer 5

Trans generational control

Question 6

Benevolent social ties are characterized by

Answer 6

Goodwill, mutual support, benevolence, and loyalty

Question 7

Degree to which the family identifies with the firm and reputation of the firm

Answer 7

Identity and reputation

Question 8

Pleasant emotions or affect experienced by owners due to their association w the firm

Answer 8

Emotions and affect

Question 9

Changing priorities based on different circumstances

Answer 9

Preferences reversal

Question 10

Being exposed to risks or threats

Answer 10

Vulnerability

Question 11

Unique qualities or resounding that give a firm an edge over its competitors

Answer 11

Competitive advantage

Question 12

Concerned w the efficient governance of the firm and collaboration between owners and managers

Answer 12

Agency perspective

Question 13

Costs that arise when owners want to ensure that managers act in their best interests

Answer 13

Principal agency costs

Question 14

What is the unique bundles of resources a firm has due to the interaction between the family and business

Answer 14

Familiness

Question 15

Money and financial resources provided by the family

Answer 15

Financial capital

Question 16

What makes up human capital

Answer 16

Knowledge, skills, and capabilities of employees

Question 17

What makes up social capital

Answer 17

Network ties, shared language, trust, and obligations within the family and business

Question 18

Physical capital is made up of

Answer 18

Tangible resources: property, equipment, and unique physical assets

Question 19

Perception and image of the firm in the eyes of customers and stakeholders

Answer 19

Reputation

Question 20

Collective behavior and identity of the firm, shaped by its history, values, and strategy

Answer 20

Organizational identity

Question 21

Recognizing and managing tensions between family and business in order to increase efficiency

Answer 21

Paradox perspective

Question 22

Managing innovation, radical change, and the search for distant solutions

Answer 22

Exploration

Question 23

Increase efficiency, making marginal improvements, and finding proximal solutions

Answer 23

Exploitation

Question 24

Introduce new ideas, products, or processes

Answer 24

Innovation

Question 25

Parsimonious resource orchestration

Answer 25

Efficient allocation and deployment of resources

Question 26

Ability to simultaneously perform exploration and exploitation, leading to superior performance

Answer 26

Ambidexterity