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

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.