What do you know?

Quick Quiz

1. What is tunneling?

A. Separating management roles by function.

B. Directing profits to company activities rather than dividends.

C. Transferring the company’s assets to deprive shareholders of value.

2. A “pyramidal” structure in a family dominated company means:

A. The founder is board chairman, other relatives are in top management.

B. The family dominates the board of directors.

C. A group of legally independent companies are controlled by the same family.

3. A dual-class share structure, common in family businesses:

A. Gives one class of shares more power, specifically voting rights.

B. Allows some shareholders to sell their shares at a premium.

C. Refers only to dividends.