Obie operates Pizza Palace. Obie hires Qua to take and fill customers' orders at an hourly wage of $15.00, plus tips. Obie and Qua are
A)not partners, because Qua does not have an ownership interest or management rights in Pizza Palace.
B)not partners, because the pay includes an hourly wage.
C)not partners, because the pay includes tips.
D)partners in a partnership.

Question

Quizplus · Accepted Answer

Qua is considered an employee rather than a partner because he does not have an ownership interest or management rights in Pizza Palace. Being paid an hourly wage and receiving tips are typical characteristics of an employee's compensation, not indicators of a partnership.

Obie Operates Pizza Palace