AFF9200

Family business issues II

Professor Claudio Romano

6 credit points in the Executive Certificate in Family Business · 3 hours per week · Caulfield

Objectives On completion of this subject students should: evaluate whether or not a family business has been professionalised; identify the steps needed to professionalise a family business; identify executive selection criteria for a family business; identify the various business structures available to a family business; assess the advantages and disadvantages of the various business structures; analyse the impact of a range of taxation issues affecting small family businesses; appreciate the importance of identifying specific personal and business estate planning objectives; understand the role of a valid Will, an Enduring Power of Attorney, the process of Estate Administration, and the Rights of Beneficiaries; and identify the potential use of superannuation and insurances and the specific implications of capital gains tax in estate planning.

Synopsis This subject is designed to meet the need of improving the management skills of family business owners, particularly in the area of structuring the business such as estate planning, succession, and taxation. The subject introduces the issues that moving from entrepreneurship to a professionally managed firm is a transition that a family business must make to prosper beyond the first stage of its development. It includes business planning, competent and motivated management, clearly defined performance expectations, identifiable performance indicators, appropriate compensation systems, effective information and control systems, and the maintenance of clear and consistent communication. The subject also discusses the various structures that are available when setting up a business and looks into the effective management of a family business' wealth, both before and after the death of a principal.

Assessment Individual assignment (2000 words): 15% · Case study exercise (3000 words): 20% · Individual presentation (20 minutes): 15% · Written examination (3 hours): 50%

Recommended texts

Aronoff C E, Ward J L and Astrachan J H Family business Sourcebook II Business Owner Resources, 1996
Gersick K E, Davis J A, McCollom H M and Lansberg I Generation to generation: Life cycles of the family business Harvard Business School Press, 1997
Cohn M Passing the torch: Succession, retirement, and estate planning in family business McGraw-Hill, 1992
Jaffe D T Working with the ones we love Conari Press, 1991

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