Question

How is a genogram helpful for running family businesses?

a. It isn't; it is primarily helpful for outsiders who want to understand the dynamics of the family as the members already know everything in it.
b. It documents family relationships to help identify instances of nepotism.
c. It helps family members understand how important family events affect business and family relationships.
d. It helps identify a line of succession to provide the business with stability.

Answer 1

A genogram helps run family businesses because it helps family members understand how important family events affect business and family relationships. It can also help identify suitable candidates for succession planning. The correct answer is option C.

Step-by-step explanation:

A genogram helps run family businesses because it helps family members understand how important family events affect business and family relationships. By visually mapping family relationships and interconnections, a genogram can provide insight into the dynamics and complexities of the family structure. This understanding can help family members navigate the challenges that arise from the intersection of family and business.

For example, a genogram can reveal potential conflicts or tensions that may arise from favoritism or nepotism within the business. It can also help identify suitable candidates for succession planning, ensuring the business's continuity and stability.