What are the advantages and disadvantages of organizing a family-owned business into a corporation?
What will be an ideal response?
Some families organize their businesses into corporations and hire professional managers to run them when no family members are in a position to manage, or no agreement can be reached on who should run the company. This solution has the advantages of using professional management, freeing family time for other purposes, reducing friction, and having employees treated more fairly.
The disadvantages of this arrangement, however, may be reduced family employment, lower income, concentration of power in small cliques, difficulties in finding and keeping a good management team, and loss of the "personal touch."
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Tracing back to individual business events that have been aggregated into account balances is done by means of a(n):
a. electronic reference service b. general ledger account c. audit trail d. data dictionary
"Successful GSPs create win-win situations, where participants pursue objectives on the basis of mutual advantage." When applied to global strategic partnerships, this statement indicates the importance of which factor?
A) mission B) strategy C) governance D) culture E) organization
A ratio of outputs to inputs is a(n)
a. effectiveness measure. b. efficiency measure. c. qualitative measure. d. cost reduction measure.
__________ theory focuses on individuals' perceptions of how fairly they are treated compared with others.
A. Expectancy B. Reinforcement C. Hierarchy of needs D. Equity E. ERG