Estate planning and the family business

Article Abstract:

The transfer of a family business from one ownership generation to another may give rise to estate-taxation issues that may undermine the continuation of the entrepreneurship. The problem is that, although enterprise owners acknowledge the need for good estate planning and support transferring ownership, they often postpone the transition of ownership until their death. By then, the burden of estate taxes on the surviving family members is too heavy, which explains why most businesses fail right after the demise of the founder. Surviving members avert the closing of their business by selling the entrepreneurship to raise the needed cash for the tax liability. Others finance it to a level when operating flexibility becomes weaker. Both of these may mean the end of family ownership and control, or of the business itself. Awareness and planning should therefore be ensured to avoid the untimely demise of the business.

Planning, Evaluation, Estate planning, Family-owned business enterprises, Family-owned businesses

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Benchmarking with ABCM

Article Abstract:

Activity-based cost management (ABCM) is a management accounting strategy that uses activity-based cost models to generate economic information for decision making. The Marketing Resources Group (MRG) of regional telephone company US WEST employed benchmarks with ABCM to evaluate the performance of its accounting department in the 1990s. The study examined the effectiveness of MRG's six major accounting productivity strategies following a five-step ABCM method. The organization's study team identified the accounting department's core activities, created four major cost pools, and then gathered cost driver information, allocated costs to each activity and determine cost per outcome. Next, the study team examined general accounting processes with costs, outcomes and benchmarks. Lastly, the team explored additional opportunities for improving accounting processes.

All Other Publishers, Miscellaneous publishing, Publishing NEC, Publishing industry, Management, Usage, Accounting and auditing, Benchmarks, Benchmarking, Costs, Industrial, Industrial costs, Accounting departments, U S WEST Marketing Resources Group Inc.

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