FBAC Certification Quiz October 29, 2021 by The Galliard Team Welcome to your Galliard FBA Certification Quiz The key areas of family business consulting covered in the Family Business AdvisorCertification program are: Family Business Foundations including the family, the business, and individual systems. The Advisor Roles and Skills. Family Dynamics and Governance including tools for understanding and managing conflict and communication. Collaboration including methodologies for building your practice. All of the above are correct. Family-owned and closely-held businesses: Contribute more than 60% of the Gross Domestic Product in the US. Employ only a very small portion of the workforce in the country. Make up 95% of the 24 million small businesses in the US today. Are proactive about planning for business transitions. Only the first and third options are correct. The "Galliard Way": Describes a process that helps owners realize how much money they will need in order to retire. Is the name of a street in Alexandria, Minnesota. Is a method for interacting with clients that is respectful, kind, and professional. Means Family Business Advisors can be counted on to do things the same way every time. As a Family Business Advisor we are encouraged to remember that: We are responsible for the success of the owner. We can handle all of the elements needed for a successful transition. We represent the best interests of the business. We need to defend the chosen successor so they can remain on the job. Galliard recommends using the "coach approach" with clients. This means the Advisor will: Ask more questions than make statements or proclamations. Keep his or her style consistent across each client so they can all be treated the same. Keep driving the conversation forward in order to adhere to the strict agenda that will help them focus on important issues. Hold him/herself responsible for having lists of options and solutions on hand so that the client will be able to make decisions quickly without having to explore too many choices. All of the above are correct. The visual image of "permanent whitewater" is a helpful way to remember that: Working with family businesses is frightening. A family that can't row together is bound to sink. Family businesses can't handle rough water. Family business engagements are complex and none are typical. Transactional Trust is: Built on a willingness to recognize and consider both sides of the story. Disrupted by those who aren't willing to accept responsibility for their actions. A key to building positive and sustainable relationships. All of the above are correct. "Why" questions: Help to drill down to real reasons. Are a "best practice" for Advisors to remember if they are to be successful. Can make people feel defensive because it seems like they have to justify their actions. Are just as good as "when" questions for aiding in good discovery. Interactions with family-owned businesses might mean we will be asked to serve in multiple roles, including: (choose all that apply) An expert who can diagnose and fix a particular problem. An advocate to be "their voice" in challenging situations. A coach who can help with personal growth and development. A by-stander who will witness but not effect the outcome. For a family business to successfully thrive they need access to the right people, including: (choose all that apply) An estate attorney An insurance advisor A financial planner A tax accountant A banker A business coach A leadership development consultant One tool that Advisors can use to help show the relationships between family members is to draw a picture called: A pelogram. A family-ogram. A genogram. A diagram. A dynamogram. It can be helpful to view the dynamics of family-owned businesses as: Four squares that represent the four key components of a good transition. Three overlapping circles representing an integrated system of individuals, business, and family. A pyramid with the founder at the top and each of the family members at various levels below. A square with nine boxes that demonstrate all the different ways a family-owned business can function. Some examples of learner questions are: Tell me about your family... I am curious about... Why do you want to... All of the above. The first and second answers are correct. Assessment Tools: Can create a barrier that keeps you from really getting to know your client. Can be a useful conversation starter. Are essential for working with a new client. The first and second answers are correct. The Legacy Building Phase is: An opportunity to finalize transition details. An opportunity to enable the new generation of leadership to fully embrace their role. Often a phase when retiring leaders plunder the company if they've not planned well. All of the above are correct. In the Harris Garden Equipment Case Study it was clear that: There were a lot of family dynamics that were making the situation complex. There was a lack of communication between Harry and Thomas. The company had a fair share of "outlaws with influence" to contribute to the situation. Harry wasn't going anywhere unless he could feel confident the family would be o.k. and that he wouldn't be disappointing his customer. All of the above are correct. Shared discovery means: I have been equally willing to share something of myself with my client and that they have been given opportunity to both give and receive information. I have told my client everything I can think of to make sure they can see my side of the situation. I have checked myself every once in a while to make sure I understand what my client is saying. I have checked in with my client to make sure they understand as well. Only the second answer is incorrect. Checking your own assumptions means taking the time to be certain you understand. A good question to ask so you can check assumptions might be: I am curious about... Can you help me to understand more about... So, as I understand it, you'd like... To clarify, our next steps will be... is that correct? All of the above are correct. Advisors can be helpful in supporting a successful generational transfer by: Making sure that the next generation doesn't change anything when they assume control. Helping the family and the business realize what they value most and the bringing those values to bear in family and business settings. Helping family members capture the history of the business so that future generations will have something to guide them as the business changes over time. Letting the future generations know that the business has little chance of succeeding and most of them should be thinking about other careers. The second and third answers are correct. It's important to understand generational differences when working with family businesses because: A business can experience 3 or more generations who have influence over the direction of a business. The Baby Boomers don't know how to manage their children and need your help. The Generation X-ers will be least likely to be able to run the business. None of the above is correct. Sibling management teams are becoming increasingly common in family-owned businesses. As Advisors we can help these teams be successful by: Helping each member of the team realize the distinction between being an owner and being a manager in the business. Bringing a greater sense of shared commitment and communication to the business. Helping to define what is the right management structure that will work with this particular team. Helping to create a board of advisors to hold them accountable. All of the above are correct. Ownership Structures in a family business might include: Non-active family members who own shares in the business. Family members working in the business who do not own shares. Both answers are correct. Neither answer is correct. A Family Council: Is typically most successful with businesses that employ 25 or more people. Is required for some business entities but not for others. Can often be created quite quickly because they really perform best when they are very casual. Really require a psychologist to serve as facilitator because so many family problems get raised. None of the above is correct Why should owners consider forming an Advisory Board? They can act as a sounding board for new ideas and strategic initiatives. They can help serve as a 'buffer' between the family and the management of the Company. They can help share legal responsibility for the business success and failure. They can provide insight and expertise that may not be present in the company. The first, second and fourth answers are correct. Verbal Akido: Is a new song by Lady Gaga. Is a method of managing negativity that helps to redirect the negativity toward the positive. Requires years of study in order to perfect because it is so intricate. Means you are able to talk back to someone in a way that silences them because it is so eloquent. Time's up Related
