Compensating Family Employees in a Family Business John A Davis 2007
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Davis, John A. 2007. “Compensating Family Employees in a Family Business: A New Framework for Accounting and Reporting.” Journal of Small Business and Entrepreneurship, Vol. 18, No. 1, 1-22. Abstract: One of the most significant challenges facing family firms is that they are typically small, family-owned, and the business operations are based largely on family members’ uncompensated work. The management and governance of these family
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I am a Family business with four generations working together. We have a close family bond and the family shares the ownership of the business. There are many challenges in managing such a business but the key is to compensate family employees well. Challenges: 1. Competition: Competition is one of the biggest challenges in family business. To overcome this, we set different business objectives and compensate family employees accordingly. 2. Decision making: Decision making is another challenge in family business. The decisions made by one generation affect
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