Ben,who runs a livestock breeding business,owes the Circle C Ranch $40,000.Ben agrees to pay the Circle C a percentage of his profits each month until the debt is paid.Because of this agreement,the Circle C is
A)Ben's creditor and partner.
B)Ben's creditor only.
C)Ben's partner only.
D)neither Ben's creditor nor his partner.

Question

Quizplus · Accepted Answer

The Circle C Ranch is Ben's creditor because Ben owes them $40,000 and has agreed to pay them a percentage of his profits until the debt is paid. There is no indication that Circle C Ranch is involved in the business operations or shares in the profits beyond debt repayment, so they are not considered a partner.

Ben,who Runs a Livestock Breeding Business,owes the Circle C Ranch