Fact Pattern 37-1A (Questions A3-A4 Apply)

question 4

Multiple Choice

Fact Pattern 37-1A (Questions A3-A4 apply)
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 commis?sion of 10 percent of the prof?its.The term is also two years.
-Refer to Fact Pattern 37-1A.Desi and Gwen are

• A)not partners,because Gwen does not have an ownership interest or manage?ment rights in eSites.
• B)not partners,because the pay includes an hourly wage.
• C)not partners,because the pay includes only 10 percent of the profits.
• D)partners in a partnership for two years.

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