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All of the following are unique resources family businesses often have, except:

a. Close social ties
b. Strong networks
c. Large amounts of liquid capital
d. Continuous reinvestment

User Martimatix
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1 Answer

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Final answer:

Family businesses are known for close social ties, strong networks, and continuous reinvestment. They tend not to have large amounts of liquid capital, which distinguishes them from larger or venture-backed companies. The answer is C.

Step-by-step explanation:

The question asks which of the listed options is not a unique resource that family businesses often have. The correct answer is c. Large amounts of liquid capital. Family businesses are typically known for their close social ties and strong networks, which can provide significant advantages in terms of trust and loyalty within the business and with external stakeholders. These businesses are also recognized for continuous reinvestment, where owners often reinvest their earnings into the business for future growth, rather than seeking outside funding that could dilute their control or require regular interest payments.

However, family businesses do not typically have large amounts of liquid capital readily available, especially in comparison to larger corporations or venture-backed companies. Instead, they might have to rely on borrowing through banks or selling stock, which comes with the obligation of interest payments or the possibility of changing the power dynamics within the company due to new stockholders.

User TobiSonne
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