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Multiple Choice Quiz
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1
Which of the following is the estimated proportion of family businesses in the UK economy?
A)10 %
B)20 %
C)50 %
D)75 %
2
The nation with largest number of family businesses in the top 200 is:
A)Korea
B)USA
C)UK
D)France
3
One of the key issues in family businesses is:
A)Future planning
B)Strategic planning
C)Succession planning
D)Support for planning
4
Which one of the following is not a characteristic problem in family business management
A)Sibling rivalry
B)Nepotism
C)Issuing shares on flotation
D)Launching a new business
5
Which one of the following is not an advantage of a family business at start-up?
A)Credibility
B)Additional capital
C)Family labour
D)Family advice
6
Which one of the following is regarded as an advantage of family businesses, especially during business development:
A)Additional capital
B)Employee loyalty
C)Close knit network of contacts
D)Family advice and support
7
Which of the following actions would dilute family control in a family-owned business?
A)Increasing the size of the business
B)Increasing non-executive directors
C)Increasing number of shares issued
D)Increasing family board members
8
Why can venture capital organisations assist family businesses?
A)They can inject capital
B)They can review performance
C)They can implement strategic planning
D)They can call on experienced family-business advisers
9
If a new CEO is brought into a family business, it is advisable that he/she has:
A)Family business experience
B)Sectoral experience
C)New firm experience
D)Taxation experience
10
In developing a successful exit strategy, a founder of a family business would not consider:
A)Trade sale to another organisation
B)Educating heirs to take over management
C)Bring in non-executive directors to assist succession
D)Abandoning succession planning





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