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

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.