Ted Anderson and Arnie Lee Began Working Together to Write

question 88

Multiple Choice

Ted Anderson and Arnie Lee began working together to write some computer programs for companies that needed to adapt standard programs to their particular needs. Ted's dad, an employee for Gong Telephone, would often hear about businesses with such needs, and would solicit clients for Ted and Arnie or advise Ted and Arnie on how to approach potential clients. Ted and Arnie now want to set up business formally and they need money. Ted's dad will give them $9000 but doesn't want his liability to ever go beyond that amount. On these facts, which of the following is true?

• A) Because Ted's dad does not do the programming, the main business of the firm, he can continue to provide services to the partnership, such as finding clients, and still be a limited partner.
• B) Ted's dad cannot be a limited partner because it takes three or more general partners before a firm can have a limited partner.
• C) If Ted's dad does not follow the statutory provisions governing limited partnerships, he could be deemed a general partner.
• D) Ted's dad can only be a limited partner if Ted and Arnie are also both limited partners.
• E) The only way to limit one's liability is to incorporate.

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Definitions:

Individually Accountable

The principle that each member of a group or team must take responsibility for contributing their own effort and work towards the collective goal.

Task Interdependence

The degree to which tasks in an organization require coordination and collaboration among different roles or individuals to complete a composite task.

Individual Reward Structures

Systems designed to provide incentives or rewards to individuals based on their performance or achievement of specific goals.

Collaboration

The act of working together with one or more people to achieve a common goal or complete a task.