Fact Pattern 14-1?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 commission of 10 percent of the profits.The term is also two years.
-Refer to Fact Pattern 14-1.Desi and Gwen are

Question

Quizplus · Accepted Answer

Desi and Gwen are not partners because Gwen does not have an ownership interest or management rights in eSites. She is simply an employee who receives hourly wages and a commission based on profits. The fact that her commission is tied to profits does not automatically make her a partner.

Fact Pattern 14-1?Desi Starts Up ESites, an Internet Service, and Leases