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:
“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)
“Grandparents can be role models about areas that may not be significant to young children directly but that can teach them about patience and courage when we are ill, or handicapped by problems of aging. Our attitudes toward retirement, marriage, recreation, even our feelings about death and dying may make much more of an impression than we realize.”
—Eda Le Shan (20th century)
“The mother’s and father’s attitudes toward the child correspond to the child’s own needs.... Mother has the function of making him secure in life, father has the function of teaching him, guiding him to cope with those problems with which the particular society the child has been born into confronts him.”
—Erich Fromm (1900–1980)