Problems
The interests of a family member may not be aligned with the interest of the business. For example, if a family member wants to be president but is not as competent as a non-family member, the personal interest of the family member and the well being of the business may be in conflict.
Or, the interests of the entire family may not be balanced with the interests of their business. For example, if a family needs its business to distribute funds for living expenses and retirement but the business requires those to stay competitive, the interests of the entire family and the business are not aligned.
Finally, the interest of one family member may not be aligned with another family member. For example, a family member who is an owner may want to sell the business to maximize their return, but a family member who is an owner and also a manager may want to keep the company because it represents their career and they want their children to have the opportunity to work in the company.
Read more about this topic: Family Business
Famous quotes containing the word problems:
“The problems of the world, AIDS, cancer, nuclear war, pollution, are, finally, no more solvable than the problem of a tree which has borne fruit: the apples are overripe and they are falling—what can be done?... Nothing can be done, and nothing needs to be done. Something is being done—the organism is preparing to rest.”
—David Mamet (b. 1947)
“Wittgenstein imagined that the philosopher was like a therapist whose task was to put problems finally to rest, and to cure us of being bewitched by them. So we are told to stop, to shut off lines of inquiry, not to find things puzzling nor to seek explanations. This is intellectual suicide.”
—Simon Blackburn (b. 1944)
“The problems of victory are more agreeable than the problems of defeat, but they are no less difficult.”
—Winston Churchill (1874–1965)