Melanie, Elliot, and Caleb Agreed to Partner in a Small

question 281

Multiple Choice

Melanie, Elliot, and Caleb agreed to partner in a small home rehab business. Initially, they were enthusiastic and eager workers. That is until their first project took more work than Melanie initially estimated, Elliot wanted morning meetings and long lunch hours, and Caleb decided to go on vacation even though the home was not complete and ready to sell. As Figure 5.2 indicates,

• A) it's smart to begin the partnership with honest communication of what each partner expects to give and get from the partnership.
• B) it's smart to organize the business as a limited liability company to reduce the financial risks that put pressure on members of the partnership.
• C) it's smart to designate one of the partners as the primary partner with final authority to call all the shots.
• D) it's smart to enter into partnerships with people who have similar educational and cultural backgrounds and similar personalities.

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Definitions:

Gaseous Nitrogen

Nitrogen in its gaseous state, making up about 78% of the Earth's atmosphere, and is chemically inert under most conditions.

Ammonia

A colorless gas with a characteristic pungent smell, consisting of nitrogen and hydrogen (NH3), used in various industrial processes and as a fertilizer.

Plant Proteins

Proteins found in plants, serving functions in growth, repair, and metabolism, and also as important sources of nutrients for many animals, including humans.

Plant Roots

The part of a plant that typically lies below the surface of the soil and is responsible for water and nutrient absorption.