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:
“She has problems with separation; he has trouble with unity—problems that make themselves felt in our relationships with our children just as they do in our relations with each other. She pulls for connection; he pushes for separateness. She tends to feel shut out; he tends to feel overwhelmed and intruded upon. It’s one of the reasons why she turns so eagerly to children—especially when they’re very young.”
—Lillian Breslow Rubin (20th century)
“If combat means living in a ditch, females have biological problems staying in a ditch for 30 days because they get infections.... Males are biologically driven to go out and hunt giraffes.”
—Newt Gingrich (b. 1943)
“Currently, U.S. society has been encouraged by its political and subsidized mass-media intelligentsia to view U.S. life as a continual “morning in America” paradise, where the only social problems occur in the inner cities. Psychologists call this denial.”
—Ishmael Reed (b. 1938)