Fact Pattern 36-1A

Fact Pattern 36-1A
Dean starts up E-Sites, an Internet service, and leases office space in a building owned by Fred. The lease requires Dean to pay Fred a base rental of $250, plus 10 percent of E-Sites' profits, each month. The term is two years. Dean hires Gina to work at E-Sites' tech support desk at an hourly wage of $9.00, plus a commis?sion of 10 percent of the prof?its. The term is also two years.
-Refer to Fact Pattern 36-1A. Dean and Fred are

A) not partners, because Fred does not have an ownership interest or manage?ment rights in E-Sites.
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:

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