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 Ben's

Question

Quizplus · Accepted Answer

Ben still retains full ownership and control over his livestock breeding business, so he is not in a partnership or joint venture with Circle C Ranch. Circle C Ranch is not acting on Ben's behalf as an agent. Therefore, the best choice is B - Circle C Ranch is Ben's creditor, as it is lending him money that he will gradually pay back through a share of his profits.

Ben, Who Runs a Livestock Breeding Business, Owes the Circle