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 the Spotlight on Small Business box, titled, "Pick Your Partners Wisely" 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)Organize the business as a limited liability company to reduce the financial risks that put pressure on members of the partnership.
C) Designate one of the partners as the primary partner with final authority to call all the shots.
D)Enter into partnerships with people who have similar educational and cultural backgrounds and similar personalities.

Question

Quizplus · Accepted Answer

It's important for partners to have honest communication and clear expectations from the beginning of the partnership to avoid issues and conflicts later on. This can help prevent misunderstandings and ensure that everyone is on the same page. Organizing the business as an LLC or designating a primary partner may also be helpful, but these options alone do not fully address the need for open communication and clear expectations. Choosing partners based solely on similar educational, cultural, or personality backgrounds may not necessarily lead to a successful partnership, as diversity can bring valuable skills and perspectives to the table.

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