3.4k views
3 votes
How can a family business help its members stay committed to stewarding the family business?

a. Being scrupulously fair because of the zero-sum dynamic
b. Keeping family members, even inactive ones, engaged in the decisions and goals of the business
c. Make sure that the business stays liquid and provides individual gain for members
d. Pay the family management less than market value to maintain high dividends for all family members

User Ahndwoo
by
8.2k points

1 Answer

6 votes

Final answer:

A family business can help its members stay committed by keeping them engaged, ensuring individual gain, and being fair in its dealings.

Step-by-step explanation:

A family business can help its members stay committed to stewarding the family business through a combination of strategies. One important factor is keeping family members engaged in the decisions and goals of the business, even if they are not actively working in the business. This can be done through regular communication, family meetings, and involvement in important business decisions.

Another factor is ensuring that the business remains profitable and provides individual gain for its members. This can include paying family management fair market value salaries to maintain the financial health of the business and offering incentives for family members to actively participate in the growth and success of the business.

Lastly, fairness is crucial in maintaining commitment. The business should strive to be scrupulously fair in its dealings with family members, avoiding any perception of favoritism or unequal treatment. This can help maintain trust and unity within the family and ensure long-term commitment to the family business.

User Astryk
by
8.3k points