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Generation to Generation: Life Cycles of the Family Business by Ivan Lansberg, Marion McCollom Hampton, John A. Davis, Kelin E. Gersick

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The Ownership Developmental Dimension

EVEN MORE THAN the family name on the door or the number of relatives in top management, it is family ownership that defines the family business. Just as for family and business structure, there are many forms that ownership may take in the family business. The structure and distribution of ownership—who owns how much of what kind of stock—can have profound effects on other business and family decisions (who will be CEO or a family leader, for instance) and on many aspects of operations and strategy. In fact, we have observed that even minor structural changes in ownership, whether triggered by the aging of family members or by strategic decisions, can have powerful ripple effects through each of the three ...

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