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

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 Fred are

A) not partners,because Fred does not have an ownership interest or manage?ment 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.