ECONOMICS
ENTREPRENEURS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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1.Family business is not common in the Indian economy like elsewhere in the world
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2. Family business is a firm that is not closely identified with at least two generations of a family
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3. Family business in India never has had a mutual influence on company policy and on the interests and objectives of the family
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4. Family exercises control over family business in the form of ownership or in the form of management of the firm where family members are employed on key positions in India.
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Detailed explanation-1: -Q: What are the characteristics of a family business? Ans: The distinct characteristics of family business include a major percentage of ownership, power over strategic decisions, voting control, participation of multiple generations and active management by family members.
Detailed explanation-2: -A family business is a commercial organization in which decision-making is influenced by multiple generations of a family, related by blood or marriage or adoption, who has both the ability to influence the vision of the business and the willingness to use this ability to pursue distinctive goals.
Detailed explanation-3: -A family-owned business may be defined as any business in which two or more family members are involved and the majority of ownership or control lies within a family. Family-owned businesses may be the oldest form of business organization.
Detailed explanation-4: -Family businesses are often classified as (1) first generation or founder firms, (2) sibling ownership or partnership, or (3) family dynasty or cousin consortium.
Detailed explanation-5: -Real and visible owners. This means that the owners are not anonymous, and they tend to accept that this means greater accountability. The pursuit of both financial and non-financial goals. A concentrated governance structure. Innovative and entrepreneurial. 07-Jul-2020