In a family business the interests of the family and

5. In a family business, the interests of the family and the interests of the business are best described as
a. overlapping.
b. conflicting.
c. coinciding.
d. having no relationship with each other.
ANS: A PTS: 1 DIF: Difficulty: Moderate
REF: p. 119 OBJ: LO: 5-1a NAT: BUSPROG: Analytic
STA: DISC: Dynamics KEY: Bloom’s: Analysis
6. The close relationship of business factors and family concerns in a family business has been
described as
7. A benefit of a strong family relationships is the greater willingness of family members to
8. Steve, Harry, and Chris, who own and operate a family auto parts store, are experiencing tough times
during a downturn in the local economy. To help the store survive these conditions, the brothers agree
to each take a 25 percent reduction in salary for a one-year period. This decision

9. An inherent problem for couples involved in a family business is that
a. conflicts in the business tend to carry over into family life.
b. hours of work may become longer for one person.
c. uneven division of labor i.e. one person is only responsible for the menial tasks.
d. some husbands find their masculinity threatened when their wives are better managers.
ANS: A PTS: 1 DIF: Difficulty: Easy
REF: p. 121 OBJ: LO: 5-1b NAT: BUSPROG: Analytic
STA: DISC: Dynamics KEY: Bloom’s: Analysis
10. Jane and Joe are experiencing a strain with their family relationship after running their family business
for 5 years. Which issue might be the most likely underlying cause of the tension?