Three Students in a Business Faculty Created a Computer Program

question 67

Multiple Choice

Three students in a business faculty created a computer program that compared various retirement plans. They decided to go into business together to offer their services directly to the public. After doing a feasibility study, they felt there were profits to be made. For tax reasons, they decided not to incorporate. Each contributed $15,000 and Wayne, one of the three, contributed a computer. In a short written agreement, they agreed that all three would be actively involved in the management of the business, that all three would work to update the program, that they would share the profits equally, and that they should not be viewed as partners. Based on these facts, which of the following statements is true?

• A) They are not partners because they do not share profits in proportion to their capital contributions.
• B) They would be considered partners despite their express intention to the contrary in their agreement.
• C) They are not partners unless they realize a profit from their enterprise.
• D) If one partner dies, the partnership would be dissolved even if they state otherwise in their agreement.
• E) If Wayne were to go bankrupt, the partnership would be dissolved even if they state otherwise in their agreement.

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Definitions:

Participant Observation

A qualitative research method where the researcher immerses themselves in a group to observe and participate in its activities.

Strengths and Weaknesses

Strengths and weaknesses refer to the internal factors and characteristics that support or hinder a person's ability to achieve their goals and objectives.

Experimental Method

A scientific approach to research where variables are manipulated to observe their effects on other variables, often used to test hypotheses.

Survey Research

A research method that involves collecting data from a predefined group of respondents by using a structured questionnaire or interview to gather insights or measure attitudes.