Fact Pattern 29-1Abby starts up Bowls to serve and sell soups for workday lunches. Abby leases space in an office building owned by Carmen. The lease requires Abby to pay Carmen a base rental of $1,250, plus 10 percent of Bowls' profits, each month. The term is two years. Abby hires Deja to take and fill customers' orders at an hourly wage of $12.50, plus tips.
-Refer to Fact Pattern 29-1.Abby and Carmen are
A) not partners, because Carmen does not have an ownership interest or management rights in Bowls.
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.
Correct Answer:
Verified
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