Fact Pattern 3-1
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 3-1.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 3-1
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 3-1.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 receives an hourly wage and tips, but does not share in the profits or losses of the business. The lease agreement between Ann and Carly also does not mention Demi as a partner or co-owner.

Fact Pattern 3-1 Ann Starts Up Bowls Bistro to Serve and Sell Soups