Nonfamily employees in a family business may be

Question 10
Nonfamily employees in a family business may be caught in the crossfire between feuding family
members.
Selected Answer: True
Answers: True
False
Question 11
A parent might attempt to resolve a transfer of ownership by giving active children in the firm’s
management _____ stock and giving nonactive children _____ stock.
Question 12

Mayer’s philosophy of never using debt to finance operations or expansion was born during the Great
Depression and passed on to his sons when they joined the family business. Today the multi-million
dollar organization proudly follows Mayer’s practice under the leadership of Mayer’s great-grandsons
and -daughters. This family’s commitment is based on:
Question 13
When a parent retires completely and turns the firm over to a son or daughter, the firm ceases to be
a family business.
Question 14
Jan and Jill started a business 20 years. Jill recently stepped down; her daughter Jenny has agreed to
start managing the company with Jan’s help; and the eventual goal is for Jenny to run the entire
company. This process between Jan and Jenny is called ____.
Selected Answer: c.

mentoring
Answers: a.
sibling partnership
b.
family consortium
c.
mentoring
d.
Two of the above are true.
Question 15
Kinder’s Deli has been in business for three generations. A place was found for every Kinder child to
work in the shop. The name Kinder meant fine deli meats. This family’s commitment is based on:

Question 16
Bella decided to hire a nonfamily member as her successor instead of selecting one of her
children. What might explain her decision?