Family businesses are the most common business model in the world, and their influence on the global economy is considered significant. They are recognized as one of the initiators of the post-industrial growth process as they are credited with developing intergenerational entrepreneurial talent, a sense of loyalty to business success, long-term strategic commitment and corporate independence. In this final paper, it will be taken a closer look at the concept of a family business, its types, advantages and disadvantages, and methods of inheritance. Special emphasis is placed on the L'oreal company. Based in France, this international personal care company is the world's leading cosmetics brand, offering products from make-up and skin care to hair care, sun protection, perfume and hair color. As of 2013, 33.31% of the company is owned by the Bettencourt family, 23.29% of the company is owned by Nestle, and 21.8% of the company is owned by institutional investors. The remaining 15.3% is owned by French institutional investors, individual investors and employees.