Allowing multiple users on my computer

My boss recently gave his old Mac to his son, and wants me to set it up for him. He asked that I don't wipe it back to factory settings, but that I set up a separate user log in for his son to use (with administrative permission). I presume that he wants to preserve his account, his files, and his iCloud and iTunes settings, but still allow his son the flexibility of having his own stand alone account on his iMac. he believes he is running "Lion".
So, here is my question. If I create another log on so that my bosses son can use his computer and sign in to his own unique account, will all of the software currently on the computer be available when my friend is signed into his account (aka. MS Office, Keynote, etc)? In addition, I'm presuming that he'll also be able to set up his own iTunes but not need to re-authorize the computer, given that it's already authorized under my account.
Other things that he'd be setting up would be his own iCloud account, mail account, iPhotos, calendar, and address book. Just trying to figure out the best to make this work.
Any suggestions would be appreciated.

If I create another log on so that my bosses son can use his computer and sign in to his own unique account, will all of the software currently on the computer be available when my friend is signed into his account (aka. MS Office, Keynote, etc)?
Yes, unless the permissions are wrong.

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