1.Thea and Rachel decided to form a partnership for selling gourmet picnic baskets. To raise sufficient capital, they convinced their mothers to invest $5,000.00 each as limited partners. Theas mother was an experienced restaurateur and watched the business with great interest. On several occasions, she advised them on the business and contacted old business associates to buy surplus stock. She even filled in taking orders in the office when needed. A customer got severe food poisoning after eating sardines supplied in their basket. The customer advised Thea and Rachel they were going to sue. When Thea and Rachel found out, they spoke with their employees to see if they knew how the sardines went bad. One of the employees said they accidentally left the basket in their car for several hours in the scorching heat. When Rachel found out about the lawsuit, she transferred ownership of her cottage to her adult children.

Which of the following statements is incorrect?

		The mothers started off as limited partners
		The mothers started off and stayed limited partners
		The mothers started off as limited partners, but Thea's mother became a general partner
		By getting involved in the running of the business, Thea's mother stopped being a limited partner

2.

Lind is retired and wants to invest in a local business. She wishes to choose a corporation for her business structure because she "likes the separation of ownership and management". This way she

		will need loyalty towards the company.
		can see that the management has good motivation.
		need not be active in managing the company.
		can get more involved with the company.

3.

Mark determines that there are several stores in Vancouver selling bootlegged copies of his popular tunes called Songs of Amour. Mark's remedies are

		to ask the court for an accounting, damages and an injunction
		to ask the court for an accounting and an injunction
		to ask a court for damages
		to ask the court for an accounting