There are two stories to this episode. In the A story, Zek, the Grand Nagus of the Ferengi Alliance, arrives on the station and seems to take an interest in Quark, but it is not clear why. He tells Quark that he wants to use Quark's bar for a conference, where he announces that Quark will be his successor. The Nagus then dies, apparently making Quark's appointment permanent.
Quark has a hard time adjusting to his new position, but he becomes popular among the Ferengi entrepreneurs by giving away lucrative business opportunities. Zek's son Krax and Rom attempt to kill Quark and are stopped by Zek, who appears before them still very much alive. Quark's appointment was a test to see how his son would respond in his absence, and as Zek says, "You failed! Miserably!" Quark congratulates Rom for having the lobes to try to kill him.
The B story deals with Sisko trying to cope with the friendship between his son Jake and Rom's son Nog. His problem is seemingly solved when Rom orders Nog not to attend school; however, Jake and Nog begin spending even more time together. Jake will only tell Sisko that what they are doing is "private." In the end, Sisko finds he has nothing to worry about when he finds Jake teaching Nog how to read.