Chapter 5 - Family Business Flashcards
What is a group of people bound by a shared history and a commitment to share a future together while supporting the development and well-being of individual members?
A family
What is an owner managed business?
A venture operated by a founding entrepreneur
What is a sibling partnership?
a business in which children of the founder become owners and managers
What is a cousin consortium
a business in third and subsequent generations when children of the siblings take ownership and management positions
What is a family business?
an organization in which either the individuals who started or acquired the firm or their descendants significantly influence the strategic decisions and life course of the firm
What is nepotism?
the practice of employing relatives in the family firm?
What is an organizational culture?
Patterns of behavior and beliefs that characterize a particular firm
Define Desire based commitment
based on a belief in the purpose of the business and a desire to contribute to it
what is an obligation based commitment?
a commitment based that results from a sense of duty
What is a cost based commitment?
a commitment based on the belief that the opportunity for gain is too great to pass up
What is a need based commitment?
a commitment based on an individual’s self doubt and belief that he lacks career options outside of the family business
What are common fears of small business owners?
failure, success, commitment, disappointing parents or disappointing others
What is a co-preneur?
A couple team who own and manage a business together
What is a family retreat?
a gathering of family members usually at a remote location to discuss family business matters
What is a family counsel?
an organized group of family members who gather periodically to discuss family related business issues
