Fact Pattern 37-1
Ann starts up Bowls Bistro to serve and sell soups and salads. Ann leases space in an office building owned by Carly. The lease requires a base rent of $1,250, plus 10 percent of Bowls Bistro's profits, each month. The term is two years. Ann hires Demi to take and fill customers' orders at an hourly wage of $15.00, plus tips.
-Refer to Fact Pattern 37-1. Ann and Demi are
A) not partners, because Demi does not have an ownership interest or management rights in Bowls Bistro.
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.

Question

Fact Pattern 37-1
Ann starts up Bowls Bistro to serve and sell soups and salads. Ann leases space in an office building owned by Carly. The lease requires a base rent of $1,250, plus 10 percent of Bowls Bistro's profits, each month. The term is two years. Ann hires Demi to take and fill customers' orders at an hourly wage of $15.00, plus tips.
-Refer to Fact Pattern 37-1. Ann and Demi are
A) ​not partners, because Demi does not have an ownership interest or management rights in Bowls Bistro.
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.

Quizplus · Accepted Answer

Ann and Demi are not partners because Demi does not have an ownership interest or management rights in Bowls Bistro. Demi is an employee who is paid an hourly wage plus tips, not a partner who shares in the profits and losses of the business.

Fact Pattern 37-1 Ann Starts Up Bowls Bistro to Serve and Sell Soups