1. Which of the following statements can be considered as a potential threat, for an incoming leader when there are inequalities in the ownership of the company?

a. The majority of the voting stock belongs to the family leader who just stepped down, so the new leader cannot earn immediate authority.

b. The minority of the voting stock belongs to non-family members who were not considered to join the new board of directors.

c. The incoming family leader inherits the controlling ownership of the business.

d. The outgoing family leader transfers the leadership and ownership to the incoming one without considering the less competent and not viable business successors.

2. Which of the following is not a example of zero sum dynamics?

a. Family members receive monetary compensations for attending manager’s meeting despite the efforts of non-family managers to reduce the overall labor costs

b. Members of the next generation of the family running the business choose to expand the business abroad to enhance the competitiveness of the company.

c. Members of the next generation of the family running the business choose to sell their stock in the business to outsiders after the family leader hired a non-family member to be the incoming CEO.???

d. Non family managers are considered first for getting a promotion in the family business despite the existence of family employment policies that pursue fairness to all applicants.

3. Which of the following can seriously affect the level of competitiveness of the family business in the long run?

a. A prenuptial policy that limits the transfer of ownership to outsiders in the event of a divorce - Unsure of this answer

b. An employment policy that outlines educational and experience requirements for family members to join the business. Wrong answer

c. A subcontractor policy that creates a fair trade practice to all interested parties.

d. A subcontractor policy that only considers family members without exploring other viable options in the market.