Question

Abby starts up Bowls Bistro to serve and sell soups for workday lunches. Abby leases space in an office building owned by Carmen. The lease requires Abby to pay Carmen a base rental of $1,250, plus 10 percent of Bowls Bistro's profits, each month. The term is two years.
Abby hires Devin to take and fill customers' orders at an hourly wage of $15.00, plus tips. ​Abby and Carmen are:

A) not partners, because Carmen does not have an ownership interest or management rights in Bowls Bistro.

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.

Answer 1

Answer:

Correct option is A.

Not partners, because Carmen does not have an ownership interest or management rights in Bowls Bistro.

Explanation:

Because he has no managerial or ownership rights, That's why they are not partners in the given scenario.