Family Business Flashcards
1
Q
Family Business
A
A company in whose ownership and/or functioning two or more members of the same family are directly involved.
A firm whose ownership passes from one generation of a family to another
2
Q
Advantages of a family business
A
- Family members make sacrifices for the good of the firm
- Higher levels of concern for its community and non-family employees
- Capability to plan and prepare for the long haul
- Emphasis on quality and value
3
Q
Disadvantages of a family firm
A
- Family problems affect business operations.
- Business problems affect family relationships.
- Little opportunity within a family business for non-family members.
- Succession problems (and related transfer of ownership challenges).
4
Q
Organizational Culture
A
Patterns of behaviors and beliefs that characterized a particular firm
5
Q
Cultural Configuration
A
The total culture of a family firm, consisting of the firm’s business, family, and governance patterns
