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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

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.Thea's 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?

a) The mothers started off as limited partners

b) The mothers started off and stayed limited partners

c)The mothers started off as limited partners,but Thea's mother became a general partner

d) By getting involved in the running of the business,Thea's mother stopped being a limited partner

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