auditor, 66 power of attorney, fiduciary relationship, 70 REVIEW QUESTIONS partnership immediately. They figure that they can 1. "One drawback of carrying on business as a sell off the partnership property so that they can partnership is that all partners are jointly and severally walk away with what they initially invested in the liable for the debts and obligations of the firm." Is business. Explain whether or not Alice and Dev's plan this statement correct? Explain why or why not and to dissolve the partnership will result in them both provide two examples to support your answer. recouping their initial investment. 2. As discussed in the text, Eva Deerfoot may be a good candidate to bring on as a limited partner in Alice and 4. Review Figure 4.1 of the text and confirm whether Dev's limited partnership because she has money to the following acts would be allowed under this invest and no interest in being involved in the running partnership agreement: of the business. While Eva may not be actively a. Dev wants to become a partner in another involved in the day-to-day concerns of the business, high-tech start-up. Alice and Dev are hoping to enlist her as a consultant b. Alice wants to be solely responsible for the to the business, given her extensive experience in the industry. They are also considering changing the hiring and firing of employees. name of the limited partnership from "ChargeltUp!" c. Dev wants to spend $475 on a new printer for to "Deerfoot Technologies" as they want to take the business. He intends to sign the cheque advantage of Eva's stellar reputation and numerous without consulting Alice. contacts in the business world. Explain why this may not be a good idea for Eva. 5. Linda, a lawyer, and her best friend Judy, an No 3. Assume that Alice and Dev decided to carry accountant, have both become burned out from their on business as a general partnership for their high-pressure careers and have decided to quit their ChargeltUp! business venture. Unfortunately, things jobs, follow their dreams, and start up a wedding have not gone well, and they have a number of planning business. They want to operate their suppliers chasing after them for unpaid invoices. business as a limited liability partnership. Would this They've decided to cut their losses and dissolve the type of partnership be available to them? 82 PART II CHOOSING A BUSINESS FORM AND NAME