Step 1: Check verb meaning. "Hanged" is used only in the sense of execution by hanging (death penalty).
Step 2: Proper usage. For objects like pictures, the correct past tense is "hung."
Step 3: Correction. The sentence should be:
"A picture of one of the progenitors of the founder of the company hung on the wall."
\[
\boxed{\text{Wrong word: hanged}}
\]