1. SMALL BUSINESS MANAGEMENT Chapter 15 Managing the Transfer of the Business

2.  Long Range Planning  Alternative _______ for the Business transferring ownership to heirs selling the business to outsiders closing down the business or declaring bankruptcy

3. Transferring Ownership to Heirs u Potential Problems in a Family Business high _______ level blurring of roles incompetence non-family _______ attitudes objectives of family owners

4. Planning for Succession  Keeping Communication Lines Open  Tax and Legal Implications of Transferring the Business to Family Members  Methods of _______ the Business to Family Members through a will,purchase and sale, gifting program, life _______, joint ownership

5. Principles of Success for Family Businesses  Recognize the Importance of Objectivity  Create Clear _______ _______  Ensure Competence  Provide _______ for Non-Family Employees  Clarify Objectives of Family Owners

6. Selling the Business to Outsiders  Going Public  Private Placement

7. Closing Down or Going Bankrupt  Closing Down  Business _______

8. Concept Checks  1. What are some methods of transferring one’s business to one’s children?  2. What is the importance of capital gains in this transfer?  3. What are the unique problems of a family owned business ?  4. Why is the emotional level higher in a family business ?

9. Concept Checks  5. What can be done with an incompetent family member employee ?  6. What can be done to prevent nonfamily employees from leaving the business ?  7. Why is it important to set long- term goals in a family business ?  8. How can family succession be made easier ?

10. Concept Checks  9. Why is open communication so important in a family business ?  10. What budget change has effected the selling of a small business ?  11. How do you know if your company should go public ?  12. What is the priority order for creditors in a bankruptcy case ?