Mel, Tim, and Bill Agreed to Partner in a Small

question 33

Multiple Choice

Mel, Tim, and Bill agreed to partner in a small rehab business. Initially, they were enthusiastic contributors until their first project took more work than Mel initially estimated; Tim wanted morning meetings and long lunch hours; and Bill decided to go on vacation even though the project 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:

States

Administrative divisions within a country, possessing certain governmental powers as defined by the nation's constitution or by historical precedent.

Thaddeus Stevens

A distinguished politician and abolitionist from the 19th century in the U.S., recognized for his pivotal role in the enactment of the 13th Amendment that eradicated slavery.

Radical Republicans

A faction of American politicians within the Republican Party from about 1854 to the end of Reconstruction in 1877 who advocated for the immediate abolition of slavery and stern retribution to the Southern states.

Andrew Johnson

The 17th President of the United States, serving from 1865 to 1869, known for his efforts to quickly reincorporate the Southern states after the Civil War and his subsequent impeachment.