Understanding the Family Business

The purpose of this book is to provide readers with an introductory overview
of family business, the most prevalent form of business in the world.
The differences between family and nonfamily businesses are emphasized
in this book. This book has several key audiences and can be used as a
supplemental text for university undergraduate or graduate level courses
such as small business management, introduction to business, entrepreneurship,
or family studies. Members of family businesses will benefi t
from the book as an introduction to the unique nature of family businesses.
Professional advisors to family fi rms, such as accountants, attorneys,
bankers, insurance providers, and fi nancial services professionals,
may develop a better understanding of their clients. Suppliers to family
businesses will gain insight to this important business customer. Much of
the literature on family business is from the United States; an attempt has
been made to present relevant international information as well.
Chapter 1 defi nes and provides an overview of family business. Chapter
2 explores the many differences between a family- owned business and
a nonfamily- owned business. Chapter 3 explores the major family business
theories. Chapter 4 discusses how family fi rms make business decisions.
Chapter 5 explores the signifi cant issues prevalent in a family fi rm.
Chapter 6 explores the most problematic issue in family fi rms: succession
or the transfer of ownership to the next generation. Chapter 7 focuses
on effective family business governance and use of advisors and boards.
Chapter 8 explores key success tips for long-lasting family fi rms. Chapter
9 discusses trends and further research in family business.