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It’s possible that for two generations in a row the most qualified person to succeed the previous was a family member, but it’s nowhere near as common as actually happens in practice in family businesses.
It’s also your family’s right to do that, so there’s no need to pretend it’s not nepotism.
So it’s often not nepotism as we know it - it’s almost reverse nepotism!
Edit: This is not the case for the Toyodas, however. All leaders of Toyota were indeed descended from the founder.