Theories of Family Business
This theory suggests individuals have different experiences and outcomes due to their place in the family.
What is Birth Order Theory
Hunter Boyd described the type of agreement he recommends when families are unwilling to implement a prenuptial agreement.
What is a buy/sell agreement.
This is the smallest stable relationship system - one side in conflict - two sides in harmony.
What is a triangle.
The name of the company of which Julie Charlestein is CEO.
What is Premier Dental.
This term means giving preference to family members for a role or job.
What is nepotism.
This theory suggests owners and managers will act as responsible stewards of family assets because the business creates a family legacy.
What is Stewardship Theory.
This is the strongest, most desirable form of commitment.
What is affective commitment.
This form of governance is selected by the owners, provides advice, and has no liability.
What is a Board of Advisors or Advisory Board.
This occurs when family firm leaders gather information about the work effectiveness and productivity of employees.
Anticipating the needs of others is an example of this concept.
What is Altruism.
This theory suggests that there are overlapping roles in the family business.
What is Systems Theory.
This is the #1 characteristic that senior generation members want to see in the next gen.
What is integrity.
This was identified the biggest skills gap for Family Business Boards.
What is HR-Talent Management.
In the 5 core rights accompanying family ownership, the right to structure governance describes this right.
What is Right to Decide.
Most Family Business Boards have this may members.
What is 5-7.
This theory suggests families have noneconomic goals that meet the family's affective needs.
What is Socioemotional Wealth.
Name the reward for next gen family members that deals with the experience and knowledge they obtain from exposure to the business.
What is Tacit Knowledge
This family business governance problem occurs when family owners supervise nonfamily managers and owners make all the decisions.
What is owner holdup.
Test that describes unplanned challenges that leaders must face (From Tests of a Prince).
What are circumstantial tests.
This term is the board's legal responsibility to act in the best interest of the family business.
What is fiduciary responsibility.
Moral Hazard is a problem explained by this theory.
What is Agency Theory.
This form of commitment could be illustrated by Kahlil staying with the family business because he felt like he shouldn't let his Dad down.
What is normative commitment.
This form of governance defines broad strategic direction, develops leadership succession and enacts policies.
What is the Board of Directors.
Describes choosing the best candidates to hire from the small pool of candidates your considered more seriously.
What is Selection.
What are extra role behaviors.