Amber owns and operates Bistro Café in space leased in a building owned by Cindy. 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 Cindy are
A) not partners, because Cindy 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.

Question

Quizplus · Accepted Answer

The fact that Cindy owns the building and Amber pays rent does not make them partners. The lease agreement only entitles Cindy to a portion of Bistro's profits, not an ownership or management interest in the business.

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