Amber Owns and Operates Bistro Café in Space Leased in a Building

question 51

Multiple Choice

Amber owns and operates Bistro Café in space leased in a building owned by Ciera. The lease requires a base rent of $1,500, plus 10 percent of Bistro's profits, each month. The term is two years. Amber and Ciera are

• A)not partners, because Ciera does not have an ownership interest or management rights in Bistro.
• B)not partners, because the lease includes "base rent."
• C)not partners, because the rent includes only 10 percent of the profits.
• D)partners in a partnership for two years.

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Definitions:

Treasury Bills

Short-term government securities issued at a discount from the face value and maturing at par, offering a return to investors.

Dividend

A portion of a company's earnings distributed to its shareholders, usually in the form of cash or additional stock.

Expected Rate Of Return

The anticipated gain or loss on an investment over a specific period, usually expressed as a percentage.

Portfolio

An assortment of monetary assets such as shares, bonds, goods, money, and money equivalents, along with closed-end funds and exchange-traded funds (ETFs).