How should an owner protect the interests of both the family and the business in a family business?
A) Recognize a basic obligation to supply the family with jobs of some type.
B) Refuse to hire family members but,instead,reward them with dividends.
C) Simplify management by making all personnel decisions affecting family members.
D) Arrange for hiring outsider leadership or supplements to family talent.

Question

Quizplus · Accepted Answer

Hiring outsider leadership or supplements to family talent is the best choice as it allows for the business to benefit from the expertise of professionals while still allowing family members to have a role in the business. This also ensures that management decisions are made based on merit rather than family ties alone. Additionally, it is important to establish clear guidelines and expectations for family members who are employed in the business to ensure that they meet the same standards as non-family employees.

How Should an Owner Protect the Interests of Both the Family