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 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.