76) Paul and Laurie both worked at the mall. They often discussed how frequently they

made the decision for the customer as to what should be bought as a gift. They concluded

that knowing the merchandise in all the stores as well as they did, they could make a lot

of money by doing Christmas shopping for customers. They discussed the idea at length.

Laurie's mom, a buyer for a department store in the mall, referred some customers to

them. As they gained more and more customers, they wanted to quit their jobs and devote

more time to this new business. Laurie's mother would give them $2000, but doesn't want

her liability to go beyond that. Given these facts, which of the following is true?

a. Laurie's mother cannot be a limited partner, because it takes four or more general

partners before a firm can have a limited partner.

b. As long as Laurie's mother does not buy on behalf of the customers hiring Paul and

Laurie, she can continue to provide services to them, such as by sending them customers,

and can advise them on marketing and other management problems, and not lose a

limited partnership status.

c. If Laurie's mother does not follow the statutory provisions governing limited

partnerships, she could be deemed a general partner and liable for claims beyond her

$2000 investment.

d. The only way to limit one's liability is to incorporate.

e. To protect themselves, all of them should be limited partners.