Paul and Laurie Both Worked at the Mall

question 47

Multiple Choice

Paul and Laurie both worked at the mall. They often discussed how frequently they made decisions for customers when helping them pick out gifts. They concluded that knowing the merchandise in all the stores as well as they did, they could make a lot of money by doing Christmas shopping for customers. They discussed the idea at length. Laurie's mom, a buyer for a department store in the mall, referred some customers to them. With more and more customers, they wanted to quit their jobs and devote more time to this new business. Laurie's mom agreed to give them $2000, but doesn't want her liability to go beyond that. On these facts, which of the following is true?

• A) Laurie's mother cannot be a limited partner because it takes four or more general partners before a firm can have a limited partner.
• B) As long as Laurie's mother does not buy on behalf of the customers hiring Paul and Laurie, she can continue to provide services to them, such as sending them customers, and can advise them on marketing and other management problems without losing her limited-partner status.
• C) If Laurie's mom does not follow the statutory provisions governing limited partnerships, she could be deemed a general partner and liable for claims beyond her $2000 investment.
• D) The only way to limit one's liability is to incorporate.
• E) To protect themselves, all of them should be limited partners.

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Definitions:

Restaurant Equipment

The specialized tools, appliances, and vessels used in restaurants for preparing, cooking, and serving food.

Sales Presentation

A method employed to convey the advantages and unique features of a product or service to potential customers, aiming to influence their purchase decision.

True Objections

Genuine concerns or hesitations expressed by a potential customer that need to be addressed by a salesperson to move forward with a sale.

Psychological

Pertaining to the mind or mental processes, especially in relation to behavior and feelings.