Fact Pattern 14-1?Desi Starts Up ESites, an Internet Service, and Leases

question 31

Multiple Choice

Fact Pattern 14-1?Desi starts up eSites, an Internet service, and leases office space in a building owned by Fred.The lease requires Desi to pay Fred a base rental of $1,250, plus 10 percent of eSites' profits, each month.The term is two years.Desi hires Gwen to work at eSites' tech support desk at an hourly wage of $12.50, plus a commission of 10 percent of the profits.The term is also two years.
-Refer to Fact Pattern 14-1.Desi and Fred are

• A)not partners, because Fred does not have an ownership interest or management rights in eSites.
• B)not partners, because the lease includes a "base rental."
• 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:

Fifth Amendment

An amendment to the U.S. Constitution that provides protections including the right against self-incrimination and double jeopardy.

Self-Incrimination

The act of giving testimony that implicates oneself in criminal wrongdoing. The Fifth Amendment to the Constitution states that no person “shall be compelled in any criminal case to be a witness against himself.”

Double Jeopardy

To place at risk, jeopardize, a person’s life or liberty twice. The Fifth Amendment to the Constitution prohibits a second prosecution for the same criminal offense.

Fourth Amendment

An amendment to the United States Constitution that protects individuals against unreasonable searches and seizures by the government.