Ted Anderson and Arnie Lee Began Working Together to Write

question 121

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 B.C. 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. One job followed another. Ted and Arnie now want to set up business formally and they need money. Ted's dad will give them $9,000 but doesn't want his liability to ever go beyond that amount. On these facts, which of the following is true?

• A) The only way to limit one's liability is to incorporate.
• 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) 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.
• D) Ted's dad can only be a limited partner if Ted and Arnie are also both limited partners.
• E) If Ted's dad does not follow the statutory provisions governing limited partnerships, he could be deemed a general partner.

---

Definitions:

Ideal Values

Principles or standards of behavior considered most important and desirable by an individual or group.

Everyday Action-directed

Pertaining to activities or tasks that people engage in on a regular basis, with a focus on achieving specific outcomes.

Job Performance

The level of effectiveness and efficiency with which an employee performs their job duties.

Vice Versa

A Latin phrase that means the other way around; it indicates that the relationship or situation can be reversed.