Jeff has
reported prominently in the prospectus that the break-even occupancy for
the first four years is 60%. This is the amount of office space that
must be leased to cover the interest and general upkeep costs over the
first four years. The 60% break-even is very low and thus communicates a
low risk to potential investors. Jeff uses the 60% break-even rate as a
major marketing tool in selling the limited partnership interests.Buried
in the fine print of the prospectus is additional information that
would allow an astute investor to determine that the break-even
occupancy will jump to 90% after the fourth year because of the
contracted increase in the mortgage interest rate. Jeff believes
prospective investors are adequately informed as to the risk of the
investment.Comment on the ethical considerations of this situation.