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Governance Structure Theories for Family Business
Abstract
It is perceived by the authors that family ownership may be seen as an opportunity or a threat based on various factors. Ownership and commitment to business would definitely be able to address the concerns of the investor community. This is because of a better understating by the family in having a strategic approach to risk management. Therefore, all the more important to have the right governance conditions in place which reflects the positive aspects of family ownership. The author further states that in order achieve the said perspectives, there emanates a need for a design structure of governance to have a balance between family and business. Hence, it becomes all the more vital to define family values and have the involvement of each and every family member. The author further elucidates on the fact that it becomes imperative to improvise capital and ensure a proper leadership succession planning so that business continuity does not suffer.
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