A Good Reason Why Partners Should Spell-Out the Details of Their

question 173

Multiple Choice

A good reason why partners should spell-out the details of their partnership arrangements in writing is:

• A)The partnership is not a legally recognized business unless they do so.
• B)A written agreement will help reduce misunderstandings and disagreements among the partners.
• C)Putting the agreement in writing will limit the liability of each partner to a specified level.
• D)Doing so will make it easier to convert the business to a corporation at a later date.

Understand the drawbacks of various forms of incentive pay, including stock ownership.

Distinguish between individual and team-based incentive systems.

Examine incentive plans that encourage employees to adopt an ownership mentality.

Differentiate the functions and outcomes of various incentive plans like the Scanlon plan, gainsharing, and employee stock ownership plans (ESOPs).

---

Definitions:

Vocabularies

The sets of words known and used by a person or within a particular language.

Encourage

To give support, confidence, or hope to someone.

Mary Ainsworth

A developmental psychologist known for her work in early emotional attachment with the "Strange Situation" assessment.

Sensitive

Having a heightened awareness of, and responsiveness to, the emotions and needs of others or oneself.